Hurricane Ike Claims

As our community works to recover from the damage caused by Hurricane Ike, there are certain things every homeowner and business owner should know about dealing with their insurance claims.  Insurance companies are in the business of minimizing exposure.  They do everything in their power to limit the amount and the value of claims that they have to pay.  The attorneys at Denena & Points, P.C. are experienced in dealing with insurance companied to ensure that our clients receive the full value of their claims. 

The damages caused by Hurricane Ike could exceed 10 billion dollars. The insurance industry knows that even a small savings for each claim will result in massive returns to their bottom line. Don't be a victim of these tactics. Fight for your rights.

In 2005, insurance companies refused or delayed paying claims of the victims of Hurricane Katrina. These insurance companies had to be taken to court in many cases before they would pay.

In Texas, the law requires insurance companies to handle these types of claims made by homeowners and business owners in good faith.  If the insurance company wrongfully denies, or fails to pay the full value of a claim, they can be held liable for attorneys' fees, a statutory 18% penalty, and in some instances, treble damages. 

Many residents fight with their insurance companies over whether the damage was caused by flooding, wind, or wind-driven water from storm surges. Many inland residents find that their claims are denied and that their insurers cite flooding disclaimers. The denial of homeowner's claims in non-flooded areas is considered a bad faith practice.

Texas homeowners insurance policies come in different forms, with different types of coverages. The policies are standardized, and are the same no matter which insurance company writes the policy. Basically, the standard homeowners' policies cover the following:

Dwelling: covers damage to the structure of the home and any unattached structures such as fences, garages and storage sheds.

Personal property: covers theft, damage or destruction to the contents of the home.

Liability: covers you and your family if you are sued and found responsible for someone else's injuries or property damage.

Medical payments: covers medical bills for people hurt on your property, and for some injuries away from your home.

Loss of use: covers some living expenses if your home is too damaged to live in during repairs.

Wind v. Flood: Most homeowners' policies will cover damage from windstorm, hurricane and hail, as well as fire and lightening. Most homeowners' policies will also cover "sudden and accidental water damage," but not flooding or water damage resulting from continuous and repeated seepage. Following Hurricane Katrina, one of the biggest areas of dispute between insurance companies and homeowners was whether damage resulted from wind (and covered under a homeowners policy) or from flood (and not covered under a homeowners policy but perhaps under a flood policy). Insurance companies typically denied damage that was caused by storm surge, even if the damage appeared to have been caused BOTH by the storm surge and by water associated with wind damage. It is likely that the insurance industry will attempt to avoid coverage for Ike-related claims on the same grounds.

Mold coverage: Many homeowners policies provide basic coverage for mold, fungi and other microbes. However, the cause of the mold must result from a covered loss under a homeowners policy. Insurance companies will often complain that the cause of the mold resulted from flood damage, so it is not covered under a homeowners policy.

Even where the policy does in fact cover mold damage, coverage under the standard policy is limited to the damage itself and does not cover costs of testing, mold remediation and living expenses due to mold. However, in some circumstances the homeowner may have purchased an endorsement that does cover these additional costs. Check your policy to see what coverage you have purchased.

Replacement cost v actual cash value: The standard HO-B and HO-C forms used in Texas will cover replacement cost of the dwelling, though the HO-A policy form will only cover actual cash value. For personal property, the policies will typically cover only actual cash value unless the homeowner has purchased an endorsement to cover replacement cost.

Flood insurance is different than homeowners insurance. Flood insurance is sold separately from homeowners insurance, and only protects you for losses caused by flood. Flood losses include prolonged rains, levee failures and, most importantly in the wave of IKE, storm surge. In Galveston and on the Bolivar Peninsula, it is expected that most homeowners insurers will argue that the losses were caused by storm surge rather than wind, and will attempt to shift all responsibility to flood insurers.

Flood insurance is government regulated and managed by the National Flood Insurance Program, or NFIP. FEMA operates the NFIP. Flood insurance is sold by private insurers, but backed by the federal government. Flood policies come in set packages of coverage. Residential coverage ranges up to $250,000 for the home and $100,000 for the contents. Commercial policies can cover up to $500,000 for the building and another $500,000 for contents.

Residents in a high risk area, such as a flood plain, would have purchased a standard policy, and in fact most mortgage lenders require these policies before approving loans on property in a flood plain or other high risk area. For residents outside of a high risk area, preferred risk policies are available at a lower cost.

There are some specific requirements for making a flood claim. Most importantly, You must file a signed, sworn proof of loss within 60 days of the flood event.  The insurance adjuster should provide you with the right forms, but you must submit the signed proof of loss within the 60 days or you will lose your coverage. The proof of loss must include a detailed estimate to replace or repair the damaged property. After Katrina, the time limit to file the proof of loss was extended to one year. However, unless and until the government makes the same determination following Ike, you must be prepared to file this information with the 60 days.

More information on how to file a flood claim can be found at http://www.floodsmart.gov.

Has your insurance company delayed or denied your legitimate claim?  Was your home or boat damaged by a hurricane?  Did your insurance company fail to pay the full value of your claim or refuse to reimburse you for your losses?  If so, contact the attorneys at Denena & Points, P.C. to handle your hurricane damage insurance claims. 

The attorneys at Denena & Points, P.C., can handle and, if necessary, litigate hurricane damage insurance claims on behalf of homeowners, apartment and condominium owners, and business owners against their insurance companies. We are accepting cases for wrongful denial of your claim, unnecessary delays in paying your claim, improper valuation of your property, and helping you determine what is and what is not covered by your insurance company.

If you have been a victim of hurricane damage and have had a claim denied or delayed by your insurance company or simply have a question, we would like to help you. Please call us toll free at 1-877-307-9500, email us, or fill out the case evaluation form. We will respond as quickly as possible, usually the same day. The initial consultation is free and if we are successful, the insurance companies may be forced to pay your attorney's fees and costs.

Located in Houston, Texas, Denena & Points, P.C., is accepting cases for hurricane victims on the Gulf Coast of Texas for all counties and cities including, Galveston, Beaumont, Port Arthur, Corpus Christi, Houston, Jasper, Lufkin, Brazoria County, Galveston County, Chambers County, Jefferson County, Orange County, Fort Bend County, Liberty County, Harris County, Hardin County, Liberty County, Tyler County, Jasper County, Newton County, Montgomery County, San Jacinto County, Polk County, San Augustine County, Sabine County, Grimes County, Walker County, and Trinity County.