April Showers Bring... May Flowers, Monsoons, Flooding, Hail and Storm Damage

Spring rains bring beautiful flowers, greenery and growth of nature.  However, storms can also bring excess water, wind and hail resulting in ugly consequences.  Below is advice on what to if you suffer from the adverse affects of Mother Nature.

BEFORE SUBMITTING AN INSURANCE CLAIM, GET A PROFESSIONAL OPINION.  Before contacting your insurance carrier, get a professional to assess the situation. Or even better, get two. Having a professional, unbiased opinion will help you to be informed of issues you may have encountered and they can typically work as an advocate with your adjuster if you do decide filing a claim is necessary.  Also keep in mind, once you submit a claim, it's on your claims history, which follows you like your credit history.  This is regardless if the adjuster finds damage and pays $10,000 or denies and pays $0 for no damage. A claim is a claim is a claim.  Unfortunately, zero dollar payout claims also count as claims frequency, which will result in loss of claims free discounts, make it difficult to fit in a preferred market, causing unnecessary increases to your rates and problems for your insurance future.

CONFIRM AND CONSIDER YOUR  DEDUCTIBLE VS THE TOTAL LOSS.  Now days, most homeowners insurance policies in Kentucky and Indiana have a separate (and typically higher) deductible for wind/hail losses than for standard losses. From what I've noticed with most carriers,  the wind/hail deductible ranges from $1,000 to 5% of home's value. Unfortunately, over the last couple years,  some insurance carriers slipped the deductible change in at the policy renewals, unnoticed by the policyholder... until a wind/hail claim occurs.  When considering filing a claim, include deductibles in the scenario. Also, keep the aspect in mind that insurance is intended to help one recover from a substantial financial hardship,  putting you back where you were before the loss. Insurance is not designed to maintain a property, put an insured 'ahead' or to pay out small/minor losses.  Zero pay out and small losses accrue the same upfront costs for adjusting the claim and therefore result in a claim ding on your insurance history. 

BELIEVE YOU HAVE STORM DAMAGE TO YOUR ROOF, SIDING, GUTTERS, WINDOWS? 

1. BEWARE OF STORM CHASERS.     In March and April 2012 the storm chasers and start-up companies poured into the heavy hit areas of KY and IN, and they are again out today.  Regardless of what carrier you utilize, take precautions, check the BBB for their rating and SOS for their establishment date. Storm chasers might eat your deductible (which is insurance fraud), however they also offer "tail-light" warranties, which are basically valid until the storm clean up is over and they drive away in search of the next storm town. 
2. LOOK FOR A REPUTABLE, LOCAL ROOFING AND EXTERIORS COMPANY.   Going local not only supports and strengthens the local economy, it provides you a barrier of protection knowing the business' established date and their reputation with clients, the BBB and trade associations.  I personally endorse a few locally owned and operated, trustworthy roofing and exterior companies. Each of these companies stand behind their work with warranties, and specialize in residential and commercial roofing and exterior work, such as windows, gutters and siding. 
   

DO YOU HAVE WATER DAMAGE FROM FLOODING OR WATER SEWER BACKUP?

1. THE HOMEOWNERS (HO-3) INSURANCE POLICY EXCLUDES LOSSES RESULTING FROM FLOOD.  There is no way around it - flood insurance policies are a completely different type of insurance policy than a homeowners (HO-3) insurance policy. Flood insurance is federally regulated and though it can be purchased from many standard carriers, the costs and coverages are exactly the same.  Unfortunately, most people do not carry flood insurance because it is expensive, limited in coverage and is not required to be carried by their mortgage company unless the property resides in a flood zone. A flood certificate is required to obtain a flood quote, which is available for a charge from MSD or your sewer provider.  There  a handful of carriers such as AIG, PURE and CHUBB that provide limited flood coverage in their high value homeowners policies. For more information about those carriers check with your insurance professional. 
2. WHAT IS THE DEFINITION OF A FLOOD?   According to FEMA the definition of flooding is:   A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder's property) from:
• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or
• Mudflow;or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
3. WHAT IS WATER BACK-UP AND SUMP DISCHARGE OR OVERFLOW COVERAGE?   


• Water Back-up and Sump Discharge coverage is excluded on the standard Homeowners (HO-3) insurance policy in KY in IN. However, this coverage is available to be added on to the HO-3 policy by endorsement, for an additional cost. As an insurance agent professional, my recommendation is to always carry this coverage endorsement add-on, regardless if you have a basement, crawl space or slab, and even if you carry the local Sewer Districts coverage offered on your water or sewage bill.
• Water Back-up and Sump Discharge or Overflow coverage is available by endorsement to the homeowners policy.  This endorsement add-on will provide $5,000 (as a starting limit, which can be increased to higher limits) of coverage for back up through a sewer or drain or overflow or discharge of a sump, sump pump or related equipment, even if the equipment suffers a mechanical breakdown. For example, the sump pump motor burns out and the basement floods; there is $5,000 of coverage for that damage. The coverage is for water or waterborne material, so coverage is provided for damage caused by items floating in the water. This coverage does not, however, increase the limits of liability for coverages A, B, C, or D in the homeowners’ policy. This takes the problem of defining back-up or overflow out of the equation of certain losses, since the endorsement provides the coverage that is excluded in the main policy itself.  
4. LOOKING FOR A REPUTABLE, LOCAL WATER RESTORATION COMPANY RECOMMENDATION?     I personally recommend a few companies that are locally owned and operated, maintain an A rating with the BBB and have been around for many years. LLH has done business with these companies.
• Black Diamond Louisville (502) 585-1919 Jeffersonville (812) 944-0453
• Emergency Restoration (502) 968-0926
• Purofirst (502) 244-1510
• Precision Dry (502) 212-2096
• Servpro (502) 897-3608
• Kings-Quality (812)944-4347

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