Nevada Insurance Commissioner Alice A. Molasky-Arman is urging Fernley residents stricken by the levee break to file a claim report with their insurance company.  A claim report should be filed regardless of whether the consumers believe they have coverage. 

Molasky-Arman has contacted insurers to remind them of their obligations and statutory responsibilities to their policyholders under an insurance contract.  She stated, “Insurance companies are required to fully inspect any damaged property before a coverage decision is made.  Additionally, insurers must provide their insureds with a reasonable and written explanation, which cites specific language in the policy to justify the reasons for denying a claim.”

Molasky-Arman clarified that flood insurance – not standard homeowners insurance – typically covers water damage due to flood.  Exclusions in homeowner policies are not identical.  They may vary among insurers or even the time of issuance of coverage.  Molasky-Arman strongly encourages consumers to review their policy language for water damage exclusions due to flood.  Among other issues, the question of whether certain flood exclusionary language in some homeowner insurance policies is sufficient to deny coverage still remains in litigation in the aftermath of the Hurricane Katrina disaster.

When addressing insurance coverage with their agent, consumers should ask the agent to fully explain any exclusions related to flood and water damage.  They should also ask about any determinations concerning related concurrent causes of loss, such as rain, wind and weight of ice or snow, which may be covered by their policy, irrespective of other damage that may be excluded from coverage. 

Consumers should also be aware that if they purchased automobile comprehensive insurance coverage, damage to their vehicle caused by the weather, including flood, is covered.  The Division is unaware of any limitations or exclusions in type of coverage that would negatively impact claims for damaged vehicles.

Molasky-Arman cautions that, in the event a claim that was originally denied becomes an accepted claim, homeowners will be required to reimburse the financial assistance or funding received from the Federal Emergency Management Agency (FEMA) not to exceed their claim settlement.   

Commissioner Molasky-Arman encourages consumers to call her office in Carson City at (775) 687-4270 if their agent or insurer refuses to receive their claim.  They may also reach the Division by e-mail at insinfo@doi.state.nv.us.

Consumers may wish to consider the purchase of flood insurance as a worthwhile option.  You do not need to live in a flood zone to purchase flood insurance.  Flood insurance, backed by FEMA’s National Flood Insurance Program, provides homeowners, business owners and renters with the best protection available against flooding.  According to FEMA, flood insurance covers buildings and contents.  Some private insurers also offer separate endorsements to homeowners policies that provide flood insurance.

Commissioner Molasky-Arman encourages consumers having difficulties with their claims to first contact their agent.  If they continue to experience difficulty, they are encouraged to call the Division’s consumer services section at (775) 687-4270.  Additional information may be found at the Division’s Web site at http://doi.state.nv.us.