Storm Warnings

(Revised March 2006)

Insurance offers financial protection against damage from natural disasters, but you need the right kind of insurance in the proper amounts. This publication can help you understand your coverage and protect your interests if you have to file a claim.

Be Prepared

Review your coverage regularly. Check the limits of your coverage, including contents coverage and coverage to buildings or structures. It´s a good idea to review your coverages at least annually. Your limits may be too low if replacement costs have risen because of additions, new purchases, or inflation.

Know what your policy covers. Homeowners, farm and ranch, renters, windstorm/hail, and condominium policies do not cover damage from rising waters. Buy flood insurance if you´re concerned about damage from rising water. If you live in an area designated as a high-risk flood zone, your mortgage company will require you to have flood insurance. However, flood insurance can be a good idea even if you don´t live in a high-risk area. About 25 percent of all flooding damage in the United States occurs in areas considered to have only a minimal flood risk.

Flood policies have a 30-day waiting period before they become effective, so don´t wait until a flood is imminent to apply for coverage. For more information, contact your insurance agent or call the federal National Flood Insurance Program (NFIP) or visit its website

1-800-427-4661
http://www.fema.gov/business/nfip/index.shtm

If you live in a county on the Texas coast, or in certain parts of southeastern Harris County, you might have to buy hail and windstorm coverage from a special insurance pool called the Texas Windstorm Insurance Association (TWIA). You can´t buy or change TWIA coverage once a hurricane has entered the Gulf of Mexico, however. For more information, call TWIA

1-800-788-8247

Check your auto policy´s declaration page to see if you have comprehensive coverage ("other than collision"). Comprehensive coverage pays if a storm, fire, or flood damages your car.

You may want more coverage than your policy provides. For an added premium, you can buy endorsements, which cover additional items or increase the coverage you have. Common endorsements increase coverage for jewelry, artwork, camera equipment, coin or stamp collections, computer equipment, and radio and television satellite dishes and antennas.

If your property does not meet current municipal building codes, you may need to purchase special "law and ordinance" coverage. Structures built or improved prior to the adoption of a building ordinance are typically "grandfathered" under the law, meaning property owners are not required to improve the property to meet the new specifications. However, if your property is damaged in an amount greater than 50 percent of the structure´s total value, most municipalities will require that you bring the entire structure into compliance with current building codes to legally make repairs. Meeting code standards can result in significant additional cost. Some homeowners policies provide up to $5,000 to cover the additional cost of complying with building codes or other similar laws and ordinances. If your policy does not include this coverage, or if you think you need more coverage than your policy provides, you may be able to add it or increase your limit. Some companies offer law and ordinance coverage in varying amounts as an endorsement to your homeowners policy for an additional premium. Contact your agent to determine whether your policy covers additional expenses to meet local building codes and to inquire about adding or increasing law and ordinance coverage. To determine whether your structure is in compliance with current building codes, contact your municipal planning department.

Your homeowners policy provides coverage to buildings or structures on your property that are not attached to your home, subject to policy limits. Increased coverage is available for an additional premium.

If you own rental property, you may want to add coverage for loss of the rent that would have been paid by a tenant during the time the home is uninhabited because of a covered loss.

Keep an inventory. Make a list of the items you own and update it regularly. Photograph or videotape each room and the exterior of your home. List serial numbers on the items you can. A detailed inventory can help speed up claims processing and can help prove tax-deductible, uninsured losses.

Safeguard your records. Keep insurance policies and your inventory in a safe deposit box or other secure spot.

Make a safety plan. If a severe storm threatens your area, you may have to make a decision whether to stay in your home or evacuate. Whenever local authorities recommend evacuation, you should leave. The advice of authorities is based on knowledge of the strength of the storm and its potential for death and destruction. If you live on the coastline or an offshore island, near a river or in a flood plain, it´s a good idea to leave. If you live on high ground or away from coastal areas, it is more likely that it will be safe to stay. In any event, you should develop a safety plan in advance to help guide the important decisions you may have to make when threatened by a storm.

• Keep emergency phone numbers handy.
• Map out safe routes inland or to safer areas. If you live in a low-lying area, know where low-water crossings might make travel to safety more difficult and plan routes that avoid these areas.
• Find out the location of any nearby community shelters in case you must seek immediate shelter.
• When a storm watch is issued for your area - an alert that a storm has not yet hit, but conditions are likely in the days or hours ahead - regularly check TV and radio for official weather bulletins.
• If you decide that it´s safe for you to stay, understand that you may be without electricity, fresh water, food, and phone service for some time and prepare accordingly. Stock up on canned goods and bottled water, check supplies of medicines and first-aid equipment, and check batteries in radios and flashlights.
• Work out a way for family members to communicate in case you must leave your home and get separated. Remember that in a severe storm local phone service may be disrupted. Agree on a friend or relative who lives outside your immediate area who can serve as a point of contact.

Protect your property. If a hurricane or severe storm warning is issued, and you have time to act, take appropriate precautions:

• Protect windows, sliding glass doors, and skylights with shutters or plywood.
• Put your car in a garage or other shelter. Secure boats and trailers.
• Move items such as lawn furniture and lawn equipment indoors or under cover.
• Trim dead wood from trees, if possible. This will reduce the amount of wind stress on trees and eliminate potential damage from falling limbs.
• Secure television antennas.
• Unplug appliances, electronic equipment, and cable TV connections in severe lightning.
• Drain swimming pools halfway and move valuables to a higher floor or safer ground if flooding is likely.
• Make sure your address is visible from the street so emergency workers can easily find your home.
• If flooding is imminent, flood insurance pays for items to protect your home such as sandbags, sand, plastic sheeting, lumber, and pumps. Save your receipts.
• If you are leaving your home, lock and secure the premises. Take small valuables and important documents with you.
• Bring pets indoors or make other arrangements for their safety. If you must seek shelter in a community shelter, understand that you will probably not be able to keep your pets with you. Contact your local humane society for information about animal shelters.
• If the threat of wildfire exists, check with local authorities to find out what protection is available. If there´s not an adequate water supply nearby, consider a storage tank or other water source for emergency use.
• And most importantly, follow the evacuation advice or orders of your local officials.

After the Storm

When it´s safe to do so, check your house and car for damage. Contact your insurance agent or company promptly to report damage. Follow immediately with a written claim to protect your rights under Texas´ prompt-payment law.

Homeowners and renters policies pay for debris removal and for temporary additional living expenses if you have to move. This coverage reimburses you for food or lodging expenses while your home is unlivable or while it is being repaired.

Make reasonable and necessary repairs to protect your home and property from further damage. Cover broken windows and holes to keep rain out. Do not make permanent repairs before a claims adjuster inspects the damage. Keep a record of your repair expenses and save all receipts. Photograph the damage. Try to be present when the adjuster inspects your damage.

Most adjusters can provide proof-of-loss forms if you need to file flood insurance claims. The claim forms must be filed with the National Flood Insurance Program within 60 days.

You may have your contractor present at the inspection or have the contractor review the adjuster´s report before settling the claim. Don´t accept an unfair settlement.

If your home is not insured, contact your local Red Cross. There may be a Disaster Recovery Center in your area to provide information and assistance. If the event is a federally declared disaster, contact the Federal Emergency Management Agency

1-800-621-FEMA (3362)

Resolving Your Claim

Your insurance company must acknowledge that it has begun an investigation within 15 days of receiving your claim. The company may request any additional information needed to settle your claim. Once it has the information, the company must notify you in writing of the acceptance or rejection of your claim within 15 business days or tell you why it needs more time. The claims handling deadlines may be extended for a certain weather-related or natural disasters.

Automobile and homeowners policies allow you or the company to demand an appraisal to resolve some claim disputes. Review your policy for a description of the appraisal process and to learn which disputes can be resolved through appraisal.

Once all differences are settled, the company has five business days to mail you a check. Surplus lines carriers have 20 days to pay. If you do not receive your payment promptly, call your agent. If you have questions about your claim, call TDI.

Public insurance adjusters charge fees to help negotiate claim settlements with insurance companies. If you hire a public adjuster, keep in mind that you may have less money to repair or replace your damaged property. The public adjuster´s fee may be a flat fee, an hourly rate, or a percentage of the amount paid in the settlement of the claim, and may not exceed 10 percent of the entire claim settlement. The method for calculating the commission must be included in the public adjuster´s contract with you. In some instances, a public adjuster is entitled only to reasonable compensation for time and expenses. Public adjusters may not give legal advice and may not participate, either directly or indirectly, in the reconstruction or repair of your damaged property. Nor may they engage in any activity that would be a conflict of interest. Should you choose to hire a public adjuster, make sure the public adjuster is licensed by TDI. To learn whether a public adjuster is licensed, call TDI´s Consumer Help Line or use the "Agent Search" feature on TDI´s website

1-800-252-3439
463-6515 in Austin
www.tdi.state.tx.us

Work With Reputable Contractors

Ask contractors for references and verify them. Contact your Better Business Bureau, local police, or Chamber of Commerce for information. Insist on an itemized contract in writing and pay only as work is completed. The Texas Deceptive Trade Practices Act prohibits price gouging once the governor has declared an area a "disaster area." If you suspect price-gouging or any other deceptive business practice, call the Office of the Attorney General´s Consumer Protection Hot Line

1-800-337-3928

For More Information

For answers to general insurance questions or for information on filing an insurance-related complaint, visit our website or call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday

www.tdi.state.tx.us
1-800-252-3439
463-6515 in Austin

For printed copies of consumer publications, call the 24-hour Publications Order Line

1-800-599-SHOP (7467)
305-7211 in Austin

Help us prevent insurance fraud To report suspected fraud, call our toll-free Fraud Hot Line

1-888-327-8818

To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line

1-877-4FIRE45 (434-7345)

The information in this publication is current as of the revision date. Changes in laws and agency administrative rules made after the revision date may affect the content. View current information on our website. TDI distributes this publication for educational purposes only. This publication is not an endorsement by TDI of any service, product, or company.

For more information contact: ConsumerProtection@tdi.state.tx.us