TDCI Offers Tips About Flood-Related Insurance Claims

The Tennessee Department of Commerce and Insurance is sharing insurance and recovery information with Tennessee residents who sustained damages as Hurricane Helene swept across parts of the state.

TDCI Commissioner Carter Lawrence has requested that all insurance carriers give affected Tennessee consumers a 60-day grace period where insurance policies cannot be canceled because of nonpayment of premiums, in addition to one early or replacement refill for medication per prescription, among other details in a new insurance bulletin, according to a news release.

The bulletin can be found at www.tn.gov/content/dam/tn/commerce/documents/insurance/bulletins/FloodRecoveryBulletin09302024.pdf .

For the latest storm recovery and relief information, consumers should visit the Tennessee Emergency Management Agency's news page, which can be found at www.tn.gov/tema/updates/hurricane-helene.html .

"I advise consumers who are filing claims after the storm to pay close attention to their coverage. Filing a complaint is always an option for consumers who may feel as if an insurance claim has been unjustly denied, or if they have questions or concerns about their insurance policies," TDCI Assistant Commissioner for Insurance Bill Huddleston said in the news release.

TDCI is provide the following tips to aid consumers when filing insurance claims and selecting contractors.

INSURANCE TIPS

What Will a Homeowners' Insurance Policy Cover?: Damage caused by wind, wind-driven rain, trees, or other falling objects are typically all covered under most standard homeowners' policies. Check your policy and call your insurance agent or company if you need clarification or have specific questions. What Will a Homeowners' Insurance Policy Not Cover? The following events are typically not covered by the standard homeowners insurance policy: Interior water damage from a storm, when there is no damage to the roof or walls of a home; damage as the result of a flood; removal of fallen trees (if the trees do not land on and damage the home); food spoilage due to a power outage; and water damage from backed-up drains or sewers. After a disaster, file your claim as soon as possible: Call your insurance company or agent with your policy number and other relevant information. Your policy may require that you make the notification within a certain time frame. Cooperate fully with the insurance company: Ask what documents, forms, and data you will need to file a claim. Keep notes detailing the name of the person you spoke with and the day, time and content of all conversations with insurance companies, creditors and relief agencies. Document the disaster by taking photos or video of any damage. If your home is so damaged that you cannot live there, ask your insurance company if you have coverage for additional living expenses. Make the repairs necessary to prevent further damage to your property. Cover broken windows, leaking roofs and damaged walls: However, do not make permanent repairs until your insurance company has inspected the property, and you have reached an agreement on the cost of repairs. Be prepared to provide the claims adjuster with records of any improvements you made prior to the damage. Consumers who feel that they have been unfairly denied a claim by an insurance company should file a complaint at www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html .

HIRING A CONTRACTOR

Before selecting a professional, ensure they are properly licensed for the project by visiting https://verify.tn.gov/. A contractor's license is required when the total cost of a project is more than $25,000. For work less than $25,000, check with your local government's building codes office to confirm whether a contractor needs a state license or local license to perform home improvement, electrical, plumbing or HVAC work, as well as their permit requirements for inspections. Get several bids and check references before committing to a contractor. Be wary of contractors selling repairs door-to-door, especially when they ask to receive payment upfront or offer deep discounts. If dealing with a company or person who promises to remove debris from your property, ask them to list the services they will provide in writing. Ensure that your contract provides for you to make an inspection and approve the work before making the final payment. State home improvement law prohibits contractors from asking for a down-payment of more than 1/3 of the total contract. Make sure you have the terms of payment in writing. To file a complaint about a contractor, visit TDCI at www.tn.gov/commerce/regboards/contractors/consumer/complaint.html .