FEMA Publishes Final Rule On Flood Insurance Claims Appeals Process

Washington, DC - The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) recently published the final rule amending the National Flood Insurance Program's (NFIP) regulations to include an appeals process for flood insurance policyholders. The final rule (RIN 1660–AA41) fulfills a key provision of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (P.L. 108-264).

"This new appeals process gives NFIP insurance policyholders specific steps to appeal a claims decision and provides them with an official mechanism to have their case heard by the Federal Flood Insurance Administrator," said David Maurstad, federal flood insurance administrator and director of FEMA's Mitigation Division. "FEMA has traditionally used an informal process to handle appeals regarding decisions related to coverage or claims under the NFIP. For our customers, this makes the process clearer and easier for them to appeal if they feel they've not been treated equitably. This written policy is consistent with our goal of making sure all claims handled by our insurance company partners are done as quickly and equitably as possible."

Under the new appeals process, FEMA will acknowledge receipt of a policyholder's appeal in writing and will advise the policyholder if additional information is required in order to fully consider the appeal. FEMA will review the documentation submitted by the policyholder and will conduct any necessary additional investigation. FEMA will advise the policyholder and the appropriate flood insurance carrier of FEMA's decision regarding the appeal.

According to FEMA, this appeals process is available after the issuance of the insurer's final claim determination. Once the final claim determination is issued, a policyholder may appeal any action taken by the insurer, FEMA employee, FEMA contractor, insurance agent or insurance adjuster. The company further adds that, the appeal must be filed within 60 days of receiving the final claim determination. The appeals process does not preclude the policyholder's right to enter into litigation if they so choose, .

SOURCE: The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA)