Storm Warnings from the Texas Department of Insurance

Storm Warnings

(July 2009)

Insurance offers financial protection against damage from disasters. Planning ahead by reviewing your insurance coverages and preparing for your personal needs can help you protect yourself, your family, and your property during a storm.

Be prepared!

Make sure your health, homeowners, auto, and commercial property coverages are still in force and that they provide adequate coverage.

Review your policies carefully so that you fully understand your coverages, limits, and the amount of your deductibles. You will have to pay your deductibles out of pocket before your insurance company will pay toward a claim. If you need help understanding your policy, ask your agent or an insurance company representative to go over it with you. It’s a good idea to review your property coverage and limits at least annually. Your limits may be too low if replacement costs have risen because of inflation, new purchases, or additions or renovations.

Consider the following types of insurance if they fit your needs:

Flood insurance. 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.

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 normally 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, call your insurance agent or the federal National Flood Insurance Program (NFIP), or visit the NFIP website
1-800-427-4661
www.fema.gov/business/nfip
Wind and hail insurance. If you live in a county on the Texas coast or in certain parts of southeastern Harris County, your homeowners policy will probably exclude coverage for wind and hail damage. You will have to buy this coverage separately.

The Texas Windstorm Insurance Association (TWIA) sells wind and hail insurance to property owners who can’t find it through the regular market. You can’t buy or increase existing TWIA coverage once a hurricane has entered the Gulf of Mexico. For more information, call TWIA

1-800-788-8247
To qualify for TWIA coverage, your property must pass a windstorm inspection and must meet certain windstorm-resistant building standards.
New structures, alterations, additions, or repairs to existing structures, including re-roofs or roof repairs must be inspected by a TDI inspector or an engineer who has been appointed by the Commissioner of Insurance. There is no fee for inspections conducted by TDI. Inspections must be made during the construction phase. For questions or to find out if your home was previously inspected, contact your agent or TDI’s Windstorm Inspection Division

1-800-248-6032
Renters insurance. A landlord’s insurance policy usually covers only the house or building, not the personal property of the building’s tenants. If you rent an apartment, duplex, house, or townhouse, you may need renters insurance to protect your belongings.
Comprehensive auto coverage. Comprehensive (other than collision) coverage will pay to repair or replace your car if its damaged or destroyed by a storm, fire, or flood. Liability coverage won’t. Liability coverage only pays to repair other vehicles damaged in an accident you caused. Check your auto policy’s declaration page to learn whether you have comprehensive coverage. Depending on the value of your car, consider buying it to fully protect your vehicle.
Business interruption coverage. Business interruption coverage compensates you for lost income and certain operating expenses if you are forced to vacate your business because of a loss covered in your policy. Before buying a policy, consider the potential lost income, operating expenses, and extra expenses you’ll incur while rebuilding your business.
Replacement cost coverage. Replacement cost is what you would pay to rebuild or repair your home at current construction costs. Actual cash value is the replacement cost of the home minus depreciation.

To ensure that you can rebuild your home if it is destroyed, buy a policy with replacement cost coverage on the dwelling. Also consider replacement cost coverage on your personal property. If you have replacement cost coverage, the insurance company will pay you the actual cash value initially and then pay the remainder of your claim after you’ve made the repairs or replaced your property.
Additional living expenses. Find out how much coverage you have for "additional living expenses" to cover lodging, food, and other expenses if you're forced to vacate your residence after suffering a covered loss.
Coverage of jewelry, artwork, and electronics. Your policy may not cover these items or might only provide limited coverage. You can usually buy endorsements to your base policy to cover additional items or increase the coverage you have.
Increased coverage on other structures. Your homeowners policy covers buildings or structures on your property that are not attached to your home, subject to the policy’s limits. You can increase your limits for an additional premium.
Loss of rent. If you own rental property, you may want to add coverage for loss of the rent that a tenant would have paid during the time the home is uninhabited because of a covered loss.
“Law and ordinance” coverage. If your property does not meet current municipal building codes, you may need “law and ordinance” coverage. Structures built or improved before 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 you to bring the entire structure into compliance with current building codes when you make repairs.

Meeting code standards can be a significant additional cost. Some homeowners policies provide up to $5,000 to cover the additional cost of complying with building codes or other similar 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.

Talk to your agent to determine whether your policy covers additional expenses to meet local building codes. To determine whether your structure complies with current building codes, call your municipal planning department.

Disaster Tips

Know how your health plan handles nonemergency care. Some health plans won’t pay for nonemergency health care from out-of-network providers, or will only pay a small portion of the cost. Know how your policy handles out-of-network care in case a disaster forces you to leave your area.
Make and keep a home 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 and the dates of purchase if you can. A detailed inventory can help speed up claims processing and can help prove tax-deductible, uninsured losses.
Safeguard your records. Keep your insurance policies and cards, inventory, and home photographs or videos in a safe deposit box or other secure spot. Consider e-mailing electronic documents to yourself to ensure you'll have them wherever you are.
Decide in advance under what circumstances you'll evacuate your home. If a severe storm threatens your area, you may have to make a decision whether to stay in your home or evacuate. 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.

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. Understand that if you stay at home, you might be without electricity, fresh water, food, and phone service for some time and prepare accordingly.
Make a safety plan. Develop a safety plan in advance to help guide the important decisions you may have to make when threatened by a storm.
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. (If you seek shelter, take care to avoid carbon monoxide poisoning. Never use generators, grills, or other gasoline, propane, natural gas, or charcoal-burning devices indoors.
Work out a way for family members to communicate in case you 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.
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. Fill your gasoline tank as soon as a hurricane watch is posted.
Prepare for being away from home. Assemble a disaster kit that you can grab in a hurry. Include the following in the kit:
- Water: Pack enough for every person to have one gallon of water for three days.
- Food: Non-perishable foods, canned goods, can opener, and utensils.
- Extra clothing: Clothes, shoes, and blankets
- First aid kit: Hand sanitizer, antibiotic ointment, bandages, thermometer, and tape.
- Medications: Pack prescriptions in their original containers. Ask your doctor about storing medications.
- Emergency items: Battery-powered radio, flashlights, extra batteries, cash, basic tools, baby wipes, garbage bags, toilet paper, and a state map.
- Personal hygiene supplies: Soap, toothpaste, toilet paper, and cleaning cloths
- Pet supplies: Medical records, medications, leash and carrier, food and water, can opener, and beds and toys.
- Important documents: Insurance cards and policies, copies of prescriptions, list of medications, wills, contracts deeds, drivers license or other identification, Social Security cards, bank account and credit card numbers, home inventory, important telephone numbers, and family records (birth and marriage certificates).
Protect your property. If a hurricane or severe storm warning is issued, and you have time to act, take appropriate precautions:
- Buy emergency repair items. These include masking tape, lumber, plastic sheeting, sandbags and sand. Keep all receipts for insurance or tax purposes.
- Cover windows and sliding glass doors with storm shutters or plywood panels. Use heavy-duty masking tape on small windows.
- Move valuables away from windows and, if possible, to an upper floor.
- Unplug appliances, electronic equipment, and cable TV connections.
- Move cars, boats, and trailers to garages or warehouses, or tie down boats and trailers next to house.
- Check tie-downs if you live in a mobile home.
- Brace garage doors, drain swimming pools halfway, move loose items indoors, and secure television antennas.
- Trim back any dead wood from trees. This will reduce the amount of wind stress on trees and eliminate potential damage from falling limbs.
- If you leave your home, lock and secure the premises. Take small valuables and your disaster kit with you. Make sure your address is visible from the street so emergency workers can easily find your home.
- Bring pets indoors or make other arrangements for their safety. If you must seek shelter in a community shelter, understand that you might 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.

After the Storm

Don’t return until authorities have said it’s safe to do so. Don’t enter your home if you smell gas, if floodwaters remain, or if your home was damaged by fire and authorities have not said it’s safe to enter.
Make a list of your damaged property. Photograph or videotape the damage if possible. Don't throw away damaged items until your insurance adjuster has had a chance to view them.
Call your insurance agent or company promptly to report property damage. Keep a record of all contacts you have with your company. Be prepared to answer questions about the extent and severity of the damage. Follow the call immediately with a written claim to protect your rights under Texas’ prompt-payment law. If you need financial assistance, ask your agent for an advance payment
Determine if you have wind or flood policies and need to file claims. If you have a separate wind and hail policy with the Texas Windstorm Insurance Association (TWIA), report claims at 1-800-788-8247. If you suffered flood damage and have a flood policy with the National Flood Insurance Program (NFIP), report claims at 1-800-638-6620. Contact your auto insurance company if your vehicle was damaged by a storm and you have comprehensive coverage.
Remove any standing water and dry the area as soon as possible. Move water-soaked items to a dry, well-ventilated area. If you must move items outdoors, place them in a secure area to protect them from possible theft.
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.
Ask your agent about additional living expenses (ALE). This coverage reimburses you for any necessary and reasonable increase in food or lodging expenses if you have to move while your home is being repaired. If you have ALE, keep all your receipts for reimbursement.
Make sure your address is visible. Post a sign with your address and the name of your insurance company in a spot that can be easily seen from the street.
Make sure your adjustor and company can contact you. If you have to move, give your insurance company and adjuster your temporary address and phone number.
Try to be present when the adjuster inspects your damage. You may also 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. Most adjusters can provide proof-of-loss forms if you need to file a flood insurance claim. The claim forms must be filed with the National Flood Insurance Program within 60 days.
Make sure any public insurance adjuster you hire is licensed by TDI. Public insurance adjusters charge fees to help negotiate claim settlements with insurance companies. If you hire a public adjuster, you may have less money to repair or replace your property. The adjuster must disclose the fee in the written contract with you.

Public adjusters may not give legal advice and may not participate, either directly or indirectly, in the reconstruction or repair of your damaged property. Make sure the public adjuster is licensed by TDI by calling TDI’s Consumer Help Line or using the “Agent Lookup” feature on our 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
Contact the Red Cross or FEMA for additional assistance. If you need to obtain shelter or emergency food or water, contact the Red Cross. If you are not insured and need financial assistance, the Federal Emergency Management Agency (FEMA) may be able to help. Contact FEMA for the location of a Disaster Recovery Center if the storm is a federally declared disaster
1-800-621-FEMA (3362)
1-800-REDCROSS (1-800-733-2767)

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 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.

For More Information or Assistance

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

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

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)

For more information contact: