With millions of victims along the eastern seaboard suffering an estimated $50 billion in total losses, there will soon be an explosion of denied homeowners claims as insurers scramble to cut their losses. Insured consumers and businesses should take proactive measures to increase the chances that their claims will be processed properly, and not unfairly reduced or wrongfully denied.
Even consumers and businesses with adequate coverage and properly documented claims could run into difficulty due to a shortage of money to cover the enormous amount of insured losses. According to the Consumer Federation of America (CFA), payments by private insurers for wind damage from Hurricane Sandy will likely exceed $10 billion. Flood claims paid by the National Flood Insurance Program (NFIP) will also likely exceed $10 billion, exhausting the NFIP’s existing $4 billion in payment authority. To make up for this shortage, FEMA is authorized to borrow up to $500 million with an additional $1 billion available with Presidential approval. The CFA’s Director of Insurance, J. Robert Hunter, says that “even combined, these borrowings will be insufficient to pay all flood claims related to Hurricane Sandy.”
One thing is clear, whether the result of fund shortages or otherwise, many people will either receive coverage denial letters or checks for far less than they expect. If this happens to you, seek the counsel of a law firm that focuses on representing consumers and businesses against insurance companies. The homeowners insurance attorneys at The DiGeorge Life Insurance Law Firm have a track record of success in representing insured clients, and we practice exclusively in the area of consumer protection. Visit www.digeorgelifeinsurancelaw.com for more information on getting your free case evaluation now.