Insurance companies processing flood claims

Insurance companies have begun processing claims from victims of last weekend’s devastating floods, although one insurance executive has noted there are several factors that will affect settlements, including type of insurance.

Musa Ibrahim, managing director of the country’s biggest insurer, Tatil, said the company had already started processing claims. Ibrahim urged clients to come forward as soon as they can. Since most claims will also require assessment, the company also has a team of adjustors ready to get the ball rolling.

He said motor claims were so far the most frequent claims, and while some claims may need adjustments, they are more specific. Homes, on the other hand, are more complex. Under normal circumstances, he said, property claims take longer to process.

“The majority of claims reported so far are motor and that’s going to be common across the industry. As soon as people can start leaving their homes, then property claims will start coming in,” he said.

Ibrahim noted though, that even though vehicles and property may be insured, the type of insurance matters, and some policies may not completely cover all the damage to the insured.

“Ultimately speaking, property policies usually cover disasters like acts of gods or natural disasters, including flooding, earthquakes and hurricanes, but they may be subject to the necessary deductibles (out of pocket expenses),” he said.

Most coverage is for fixed property damage—that is, to the structure. In terms of flooding, it’s usually flooring and fixed carpeting. Contents insurance are elective. Similarly, while any comprehensive motor policy should cover “special perils,” including flooding, not all polices do, and the Motor Vehicles and Road Transport Act does not require it, so the insured may need to choose to have it as part of their policy, since it’s not automatic.

The Association of TT Insurance Companies (Attic) has provided a checklist for policyholders when making claims.

· If more than half of your vehicle was submerged in flood water, do not attempt to start it. Have it inspected as soon as possible by your authorised repairer.

· Immediately contact your insurance company, agent or broker and notify them of any claims.

· If possible, take as many photographs of your property and/or vehicles before cleaning up as this will assist the claim process.

· Submit estimates for loss and/or repairs along with a completed claims form and a statement of claim.

· Wait to hear from your insurer, who will appoint an adjuster to survey the property or vehicle and verify the claim.

Once the claim is verified, the insurer will decide on an appropriate settlement according to the adjuster’s report and the terms and conditions of the policy.