When The Earth Moves, Flood Insurance Is Denied
<table border="0" cellpadding="0" cellspacing="0">
| By Ken Serrano, Asbury Park Press, N.J. | |
| McClatchy-Tribune Information Services |
Both are technical terms buried within insurance agreements that can cut tens of thousands of dollars from a homeowner's insurance offer -- and be the difference between salvaging a damaged home or forcing the owner to simply walk away.
There's an exclusion in flood insurance policies for a loss of property caused "directly by earth movement even if the earth movement is caused by flood," according to the standard policy. In layman's terms, that means if water moves the soil and that movement of soil cracks a house's foundation, that damage is not covered by insurance.
The National Flood Insurance Program does not keep records on the number of claims that have been denied because of damaged foundations.
But denials for flood insurance have become a cause with growing support in
U.S. Sen.
The exclusion is the focus of a
Trautman said that adjusters for insurance companies are following
"They're really looking for any reason to deny in case
The flood waters from Sandy wreaked havoc on the foundation of a client from
His experts are prepared to argue that it was "liquefaction erosion" that damaged that clients' foundation, which he says is covered by flood insurance. The ocean water eroded the soil -- mostly sand -- around the foundation, compromising it, he said.
The dispute boils down to definitions under the policy, the basis of many insurance arguments.
"There's a long history of litigation over definitions," said
Watson, who also serves as spokesman for the National Flood Insurance Program, declined to address the dispute over definitions.
He said that policyholders who have concerns with their insurance companies can call
@njpressmedia.com
___
(c)2013 Asbury Park Press (Neptune, N.J.)
Visit the Asbury Park Press (Neptune, N.J.) at www.app.com
Distributed by MCT Information Services
| Wordcount: | 545 |


Board to break off health insurance risk pool [The Telegraph, Nashua, N.H.]
Advisor News
- Retirement providers turn to digital engagement to retain assets
- Looking out for clients with diminished mental capacity
- House panel advances CLEAR Forms Act backed by IRI
- Modifying life insurance based on evolving needs
- Gen X faces ‘pension envy’ as they head into retirement
More Advisor NewsAnnuity News
- Global Atlantic Announces Launch of ForeLifetime Income, a New Fixed Index Annuity
- A-Cap strikes back with lawsuit accusing SC regulators of sloppy process, leaking secrets
- AM Best to Discuss Its Views on Private Credit Surge and Risks at 2026 NAIC/NIPR Insurance Summit
- OID recovers $260M in life insurance benefits
- NUNN BILLS TO COMBAT PAYMENT SCAMS, CUT FINANCIAL RED TAPE PASS FINANCIAL SERVICES COMMITTEE
More Annuity NewsHealth/Employee Benefits News
Life Insurance News