PeteKing NFIP Sandy Accelerated Partial Payment Process

NFIP Sandy Accelerated Partial Payment Process

December 10, 2012

FEMA gives guidance and flexibility on providing accelerated NFIP claims payments

To help those Hurricane Sandy survivors with flood insurance, FEMA is expediting partial National Flood Insurance Program payments to policyholders.

FEMA has given private insurance agents and companies guidance and flexibility on providing accelerated claims payments to enable NFIP policyholders to remain safely in damaged residences.

Claim payments can be made before an inspection and a written estimate can be prepared for repairing the equipment that provides heat and hot water. The inspection and report still have to be completed at a later time.

Policyholders still need to report flood losses to the insurance company or agent who wrote the policy.

To be eligible for an accelerated payment, the NFIP policyholder must agree and accept the terms for receiving a waiver of the normal claim process and comply with several conditions which include, but are not limited to, providing to their insurance company:

o Documents showing that the damage to the equipment was the result of a flood;
o Receipts showing all actual costs incurred in repairing or replacing the damaged equipment;
o Assurances that any payment they receive from this process will be used to permanently repair or replace the heating and hot water equipment damaged by Sandy.

If the policyholder complies with all of the conditions and agrees to the terms of receiving the waiver, the insurer may issue a conditional partial payment or advance payment to the policyholder not to exceed $25,000.

If permanent repairs to exterior windows, exterior doors, and minor permanent repairs to exterior walls are needed to heat the home, the insurer may issue an additional building payment up to $5,000.

Any mortgagee known will be named as an additional payee on the checks.

It is important to understand that there are no waivers of any of the exclusions of the Standard Flood Insurance Policy.

For additional information on the NFIP and flood insurance, contact your insurance company or agent, call 800-427-4661 or visit