Are You Covered Under the National Flood Insurance Program?

Posted By Florida Insurance Lawyer || 13-Feb-2013


In the aftermath of Hurricane Sandy, many homeowners across the east coast are realizing that their homeowner insurance claims are being vastly underpaid or even denied completely. Some families are in tragic states where there kitchen and other rooms in their home are not even recognizable because they are filled and thrashed with water damage and are now in an unlivable state. What is the reasoning behind these claim denial you ask? It turns out that many homeowners only receive insurance coverage on the first elevated level of their home, which has caused serious stress and frustration among many homeowners affected by Hurricane Sandy.

The way that the National Flood Insurance Program (NFIP) works is that they will look to see what year you home was built, or the date that a big home improvement was made to the property. If your home was built in a community that had not yet been accepted into the NFIP and there was a Flood Insurance Rate Map prepared for that community, then you home may be "grandfathered." Fortunately, this means that you have full coverage from the ground up- basements typically have limited coverage, depending on the date in which it was built.

The down side is, if your home was built after that community was accepted into the NFIP and after a the Flood Insurance Rate Map (FIRM) was prepared, then you coverage will probably only cover the first level that stands above the base flood level. These federal regulations have really caught homeowners off guard- many do not qualify and therefore have limited flood insurance coverage. What makes matters worse, is that these homeonwners were also not aware of additional insurance policies that could have provided that extra coverage that they need.

As a policy holder, you like to trust that your insurance broker with provide you with trustworthy advice and lead you to the necessary coverage plan that will meet your needs. The fact of the matter is that many homeowners in New Jersey are just realizing they are now underinsured for their hurricane damages and may face severe financial hardship because of it. This new information will undoubtedly give way to numerous other negligent insurance agents.

Here at Florida Insurance Claim Attorney Advocates, PA (F.I.C.A.A.), we believe that you deserve proper guidance from your insurance broker and will fight to protect your rights against bad faith or misconduct. We specialize in homeowner insurance claims and we have been providing our services to Florida residents since 1997. If you believe that you are underinsured on your insurance claim or your claim has been wrongfully denied, take legal action at once and consult with a Florida insurance attorney from our office.