Wednesday, August 31, 2011

Property damage from wind or water from Hurricane Irene?

Now it a tough time for Insurance companies and the claims agent to find whether the property damage from wind or water for their clients on Hurricane Irene. How they will decide reimbursement amounts to property owners face soggy basements, shattered windows and tree-beaten roofs.Battles over who pays for what will start funneling into state and federal courts and arbitration forums.Most of the home owners are protected through the National Flood Insurance Program (NFIP).

On Sept. 30, 2011, the NFIP, which provides flood insurance to 5.6 million homes and businesses, will expire.Once this hits homeowners quickly learn whether they purchased adequate policies from their insurance companies .People who live in areas where floods are likely to occur should know that standard home insurance policies wont cover flood damage, but this time whole East cost effects this.Many consumers confuse the market value of their home with its replacement cost. They are two very different things. Building costs can go up even when real estate values fall

Those who do have flood insurance may find it hard to get reimbursement from the government program, which is overburdened from Hurricane Katrina. Another factor that will affect the volume of litigation is whether a jurisdiction allows policyholders to recover legal fees.Disputes over claims are by far the exception since insurance companies have their reputations to consider, Irene could have been much worse. The economic damage it wreaked was just a fraction of the damage from Hurricane Katrina in 2005 or Andrew in 1992