Georgia and South Carolina Insurance Regulators Must Ensure Consumer Claims Get Paid in Full
ATLANTA, GA, August 16, 2024—Today, Georgia Watch, the Consumer Federation of America (CFA), and United Policyholders shared tips and resources to help consumers get their insurance claims paid promptly, fully, and fairly in the wake of Tropical Storm Debby. Policyholders are entitled to receive their claims payments to the full extent of their insurance policies. Importantly, given the nature of this storm, consumers who have sustained damage from falling rain (as opposed to flooding) should be covered under their traditional homeowners’ insurance policies. State and federal regulators must hold insurers to their obligations and ensure consumers are fairly treated.
“Consumers confronting damage from Debby have every right to get prompt and full payments from their home and flood insurance policies, so they can start repairing their homes and returning to normal as soon as possible,” said Michael DeLong, CFA’s Research and Advocacy Associate.
“At a time of rising insurance costs, Georgians need prompt relief and strong oversight more than ever,” said Liz Coyle, Executive Director of Georgia Watch. “Paying out insurance claims fully and quickly is critical to recovery for families and communities.”
“If your home or business has been damaged, take photos of the damage and document your interactions with the insurance company,” said Amy Bach, Executive Director of United Policyholders. “And speak up for fair treatment. Knowing your rights and being pro-active in the insurance claim process is critical. Use our Roadmap to Recovery program as a resource to learn more.”
Many victims of Tropical Storm Debby may be underinsured or even uninsured for flood or wind damage. One key concern will center around whether home insurers argue that damage was done by flooding rather than the storm itself. While traditional homeowners insurance policies (in conjunction with special windstorm policies in some coastal communities) cover rain and wind damage from tropical storms, damage from flooding is only covered if a resident maintains a separate flood insurance policy. Most flood policies are sold by the National Flood Insurance Program (NFIP), but only a small percentage of Americans have flood insurance.
In the past, companies have tried to shirk their responsibility for certain damages after storms in which there was both covered damage and flood damage. For example, State Farm paid a $100 million settlement related to allegations that it improperly denied Hurricane Katrina claims or shifted responsibility to the NFIP by arguing that damage stemmed from flooding instead of the hurricane.
CFA, Georgia Watch, and United Policyholders urge Georgia and South Carolina officials to monitor the claims handling process of all insurers. Residents should contact their Insurance Departments if they believe their insurer is improperly denying or reducing the value of a claim for any reason. Insured property owners with damaged homes should take the following steps:
- Contact your insurance company and report your claim as quickly as possible. Depending on what caused the damage to your home, your claim may be covered by homeowners insurance or flood insurance, or by both.
- Document the damage in photos and videos as thoroughly as possible, but only to the extent that it is safe to do so. Do not allow damaged items to be removed before they have been photo-documented.
- Keep a daily journal, noting every time you speak or interact with insurance company adjusters, repair professionals, and anyone else you are considering hiring. Note their name and the date and time of the contact.
- Maintain receipts for every cost you incur; this includes hotel and food costs if you evacuate, any alternative living arrangement costs if you cannot return to your home, and any costs for making initial repairs to your home to prevent further damage. This may be covered under your homeowners insurance policy or private flood insurance policy. Temporary living expenses are not covered under National Flood Insurance Program policies.
- Check references and license status before you agree to hire or assign any of your insurance benefits to any professional. Unfortunately, post-disaster scams are common. Local help is preferable, but if it is not available, be careful and vet out-of-the-area pros before you sign on the dotted line.
- Contact your Insurance Department and the Federal Emergency Management Agency (FEMA, for flood insurance) if you run into problems.
Georgia Office of the Insurance and Safety Fire Commissioner
404-656-2070 or 800-656-2298
2 Martin Luther King Jr. Dr. West Tower, Suite 702
Atlanta, GA 30334
File a complaint: https://oci.georgia.gov/file-consumer-insurance-complaint
South Carolina Department of Insurance
803-737-6160
1201 Main Street, Suite 1000
Columbia, SC 29201
File a complaint: https://sbs.naic.org/solar-web/pages/public/onlineComplaintForm/onlineComplaintForm.jsf?state=SC&dswid=7109
Federal Emergency Management Agency
1-800-427-4661
500 C St SW, Washington, DC 20024
https://www.fema.gov/about/contact
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About Georgia Watch
Founded in 2002, Georgia Watch is a statewide, non-profit consumer advocacy organization working to inform and protect Georgia consumers on matters that significantly impact their quality of life, including the effects of predatory business practices, the high cost of utilities and healthcare, and restricted access to the civil justice system.