Public adjusters and policyholders should stay vigilant and exact when coping with federal flood insurance coverage claims underneath the Nationwide Flood Insurance coverage Program (NFIP). A current resolution in Blocdahl Leasing, LLC v. American Strategic Insurance coverage Company 1 highlights a vital 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 based mostly on the insurer’s adjuster reviews, 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 didn’t 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 is not only a formality—it’s a strict prerequisite to get better further insurance coverage advantages. Whereas FEMA has issued bulletins permitting insurers to pay claims based mostly on adjusters’ reviews with no 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 should 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 resolution underscores two crucial factors. First, public adjusters ought to educate their purchasers on the significance of finishing and signing proofs of loss precisely and on time. Even when the insurer seems prepared to proceed with no signed proof of loss, policyholders should comply strictly with the SFIP necessities for contested claims. Second, all deadlines should be strictly noticed. FEMA generally extends these deadlines, however this leniency doesn’t eradicate 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 should not topic to “charitable laxity.” A seemingly minor oversight, comparable to failing to signal a proof of loss, can lead to an entire denial of further advantages—even when the damages are substantial and well-documented.
Policyholders dealing with flood-related losses ought to work carefully 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 non-compulsory. It’s a crucial step in defending your rights underneath a flood insurance coverage coverage.
For public adjusters, this case reaffirms the worth of meticulous record-keeping, thorough consumer communication, and adherence to procedural necessities. Guaranteeing that your purchasers 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 counsel 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 Courtroom, and A Warning Relating to 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).
