TRENTON —To help New Jersey property owners who have suffered damage caused by the recent severe flooding and storms across the state, the New Jersey Department of Banking and Insurance is providing guidance on filing insurance claims for storm-related damage.
“The recent storms and flooding in New Jersey have caused significant damage to many homes, businesses, and vehicles,” said Commissioner Justin Zimmerman. “The Department is providing guidance to assist residents in filing auto or homeowners insurance claims in order to begin the restoration process. We also want to remind residents that if they have concerns or issues related to their insurance claims, the Department is here to help.”
Homeowners insurance protects homeowners from damage to their home, other structures like detached garages, storage sheds and fences, as well as personal property like furniture. Homeowners insurance policies exclude water damage caused by flooding, as do most renters insurance policies. Only flood insurance covers a person’s home and their personal property from floods.
Damage to a personal or commercial vehicle from flood or other damage, such as falling trees, is covered under an auto policy’s optional comprehensive coverage (also known as comp or “other than collision”). If you do have comprehensive coverage, contact your agent or company to file a claim. If you only have liability coverage, your insurance company will not cover damage to your vehicle caused by flood.
How to File Homeowners Insurance Claim, Commercial Property Insurance Claim
Call your agent or insurance company as soon as possible to report your loss. Have your policy number ready along with any relevant information, and be ready to record the claim number, contact information for the assigned claim representative, and any important information about your claim. Ask your agent or insurance company what documentation you will need to provide. If you have any questions, your agent or insurance company will assist you.
Document damage. Consumers/business owners are recommended to take pictures of all damaged property before disposing of it and, if possible, retain the damaged property until the insurance company either inspects it or advises that it can be disposed of. Consumers/business owners should ask the insurance company how to proceed, as in most cases the company will require the damaged property to be physically available for inspection.
Make necessary repairs. If your property has been damaged, it is important to make any necessary temporary repairs to protect it from further loss or damage. For example, if windows are broken, have them boarded up to protect against vandalism or weather. Save all receipts or bills to submit as part of your claim.
Work with a claim adjuster. Your insurance company will assign a claim adjuster to inspect the damages and determine coverage. You should cooperate with the adjuster and keep written notes about conversations regarding your claim. The company should provide you with a copy of the damage estimate and if you request it, give you the name of a contractor who will do the work at the price estimated. You are not required to use the company’s recommended contractor. If all or part of the loss is not covered, the company must explain how coverage is excluded under your policy.
Understanding public adjusters. Public adjusters, licensed by the Department of Banking and Insurance, are professionals that may be hired by insurance policyholders to appraise damages to their property and negotiate their insurance claims. They are paid from the proceeds of a policyholder’s claims settlement, typically a percentage of the total amount received. State regulation requires that public adjuster contracts specify a list of services to be rendered and the maximum fee to be charged, “which fees shall be reasonably related to services rendered” and should not be excessive. Public adjusters are not required for an individual to file or resolve claims with an insurance company. Consumers with questions about the process can contact the Department.
Resolving disputes. If you and the insurance company do not agree, first try to resolve your issues with the company. Sometimes it helps to have your contractor speak directly with the claim adjuster. If you cannot resolve the dispute with your insurance company, you can contact the Department’s Consumer Hotline at 1-800-446-7467 (8:30 a.m. to 5 p.m. EST Monday-Friday), or visit the Department website and click on Consumer Assistance - Inquiries/Complaints.
Understand Flood Insurance
Flood insurance is not part of most homeowner insurance policies, as well as policies for businesses, condominium owners and renters. Consumers can purchase a flood insurance policy from the federal National Flood Insurance Program, which operates as the primary provider of flood insurance for residential properties. Private flood insurance is also an option. Consumers can find companies offering flood insurance in New Jersey at nj.gov/dobi/division_consumers/insurance/homeownercontacts.htm#flood.
Consumers should be aware that flood insurance is not effective until 30 days after it is sold. Therefore, consumers who want flood insurance should contact an approved flood insurance agent immediately and not wait for another approaching storm.
For Assistance:
The Department encourages all consumers with an inquiry or complaint concerning an insurance matter to contact us. The Department may be reached through our consumer hotline at 1-800-446-7467 (8:30 am to 5:00 pm EST Monday-Friday), or go to the Department’s website and click on Consumer Assistance - Inquiries/Complaints, at www.nj.gov/dobi/consumer.htm
Additional resources:
|
