Post by ferris1248 on Sept 17, 2024 7:59:51 GMT -5
Food for thought if your home has prior flood damage.
"When Tropical Storm Debby came through Pinellas County, Florida in early August, Danielle Jensen thought her home was protected with flood insurance from the National Flood Insurance Program (NFIP)."
"After all, she did spend $8,600 on a policy administered directly by the Federal Emergency Management Agency (FEMA)."
"But when insurance adjusters came through, they denied her claim outright, not due to any fault of her own. A “prior loss” report discovered that the previous owner filed a flood insurance claim, but did not complete the repairs with the claim payout."
"From the home’s condition to the serial numbers on the appliances, everything was the same from the previous insurance claim, leaving her family on the hook for close to $100,000 in damages."
"A denial like this can happen to anyone living in one of the roughly 23,000 NFIP communities if homeowners aren’t aware of their property’s past."
"Unfortunately, traditional homeowners and renter’s insurance will not cover flood damage, and if your home has received federal disaster assistance in the past, you are required to hold flood insurance for as long as you live at the property. That doesn’t guarantee that every situation will be covered — and in the case of Jensen, the actions of the past homeowner caused her flood claim to be denied."
"The problem for NFIP-participating communities up until now is that federal law hasn’t required disclosure of a previous flood insurance claim, or the outcomes thereof. Any disclosure of claims information without the consent of the claimant or current homeowner has been seen as a violation of the Privacy Act — meaning the owner hasn’t had to provide information about prior claims during the home sales process."
"Until Florida’s House Bill 1049 goes into effect, it’s a good idea to get a clear yes or no regarding past claims from the seller on the disclosure form before purchasing a home in a high-risk flood zone. Any knowledge gaps or unsure responses may be a red flag. You can also work with your real estate agent to get as much information as you can before closing, including requesting a full prior loss report from the seller."
www.msn.com/en-us/money/realestate/this-florida-woman-bought-a-flood-insurance-policy-for-8-600-but-after-her-home-flooded-during-tropical-storm-debby-her-nearly-100k-claim-was-denied-due-to-a-major-loophole/ar-AA1qHq1o?ocid=msedgdhp&pc=U531&cvid=ba7e3f794f974c7b938644d3a48762d3&ei=100
"When Tropical Storm Debby came through Pinellas County, Florida in early August, Danielle Jensen thought her home was protected with flood insurance from the National Flood Insurance Program (NFIP)."
"After all, she did spend $8,600 on a policy administered directly by the Federal Emergency Management Agency (FEMA)."
"But when insurance adjusters came through, they denied her claim outright, not due to any fault of her own. A “prior loss” report discovered that the previous owner filed a flood insurance claim, but did not complete the repairs with the claim payout."
"From the home’s condition to the serial numbers on the appliances, everything was the same from the previous insurance claim, leaving her family on the hook for close to $100,000 in damages."
"A denial like this can happen to anyone living in one of the roughly 23,000 NFIP communities if homeowners aren’t aware of their property’s past."
"Unfortunately, traditional homeowners and renter’s insurance will not cover flood damage, and if your home has received federal disaster assistance in the past, you are required to hold flood insurance for as long as you live at the property. That doesn’t guarantee that every situation will be covered — and in the case of Jensen, the actions of the past homeowner caused her flood claim to be denied."
"The problem for NFIP-participating communities up until now is that federal law hasn’t required disclosure of a previous flood insurance claim, or the outcomes thereof. Any disclosure of claims information without the consent of the claimant or current homeowner has been seen as a violation of the Privacy Act — meaning the owner hasn’t had to provide information about prior claims during the home sales process."
"Until Florida’s House Bill 1049 goes into effect, it’s a good idea to get a clear yes or no regarding past claims from the seller on the disclosure form before purchasing a home in a high-risk flood zone. Any knowledge gaps or unsure responses may be a red flag. You can also work with your real estate agent to get as much information as you can before closing, including requesting a full prior loss report from the seller."
www.msn.com/en-us/money/realestate/this-florida-woman-bought-a-flood-insurance-policy-for-8-600-but-after-her-home-flooded-during-tropical-storm-debby-her-nearly-100k-claim-was-denied-due-to-a-major-loophole/ar-AA1qHq1o?ocid=msedgdhp&pc=U531&cvid=ba7e3f794f974c7b938644d3a48762d3&ei=100
