Public adjusters and policyholders should stay vigilant and exact when coping with federal flood insurance coverage claims beneath the Nationwide Flood Insurance coverage Program (NFIP). A latest determination in Blocdahl Leasing, LLC v. American Strategic Insurance coverage Company 1 highlights an important pitfall: Failure to submit a signed proof of loss can utterly bar a declare for added advantages.
This case arose from flood injury brought on by Hurricane Ian. Regardless of receiving over $94,000 in funds primarily based on the insurer’s adjuster experiences, the plaintiff, Blocdahl Leasing, was dissatisfied and sought further advantages exceeding the coverage limits. Nonetheless, the courtroom granted abstract judgment in favor of the flood insurer as a result of Blocdahl Leasing did not submit a signed proof of loss for the contested quantities.
Below the Normal Flood Insurance coverage Coverage (SFIP), submitting a signed and sworn proof of loss isn’t just a formality—it’s a strict prerequisite to recuperate further insurance coverage advantages. Whereas FEMA has issued bulletins permitting insurers to pay claims primarily based on adjusters’ experiences and not using a signed proof of loss, this leniency doesn’t prolong to contested claims. If a policyholder disagrees with the insurer’s adjuster report, they have to submit a signed proof of loss together with supporting documentation. With out this, the declare will fail.
The courtroom said:
The proof of loss necessities have to be strictly construed….‘[N]ot even the temptations of a tough case ought to trigger courts to learn the necessities of a federal insurance coverage contract with ‘charitable laxity.’
The Blocdahl determination underscores two vital factors. First, public adjusters ought to educate their shoppers on the significance of finishing and signing proofs of loss precisely and on time. Even when the insurer seems keen to proceed and not using a signed proof of loss, policyholders should comply strictly with the SFIP necessities for contested claims. Second, all deadlines have to be strictly noticed. FEMA generally extends these deadlines, however this leniency doesn’t get rid of the necessity for on-time signed documentation.
This case ought to function a wake-up name for policyholders and public adjusters with Hurricane Helene and Milton claims. Federal courts persistently emphasize the significance of adhering to the technical necessities of the SFIP. Because the courtroom in Blocdahl famous, federal flood insurance coverage contracts aren’t topic to “charitable laxity.” A seemingly minor oversight, equivalent to failing to signal a proof of loss, may end up in an entire denial of further advantages—even when the damages are substantial and well-documented.
Policyholders going through flood-related losses ought to work intently with educated public adjusters and authorized counsel to make sure compliance with all NFIP necessities. Correctly making ready, signing, and submitting proofs of loss inside the prescribed timelines is just not optionally available. It’s a vital step in defending your rights beneath a flood insurance coverage coverage.
For public adjusters, this case reaffirms the worth of meticulous record-keeping, thorough shopper communication, and adherence to procedural necessities. Guaranteeing that your shoppers meet these exacting requirements could make the distinction between a profitable restoration and a irritating denial.
The federal flood proofs of loss for Hurricanes Helene and Milton have been prolonged to 180 days from these storms, as famous in Nationwide Flood Proofs of Loss for Hurricanes Helene and Milton Prolonged to 180 Days. For these with federal flood claims from Hurricanes Helene or Milton, I’d recommend you additionally learn Federal Flood Proofs of Loss Due on Friday and a Flood Case Displaying How Unfair it Can Be to Battle Nationwide Flood in Court docket, and A Warning Concerning Federal Flood Proofs Of Loss.
Thought For The Day
“Self-discipline is the bridge between targets and accomplishment.”
—Jim Rohn
1 Blocdahl Leasing v. American Strategic Ins. Corp., No. 2:23-cv-776, 2024 WL 5202783 (M.D. Fla. Dec. 23, 2024).