Flood Insurance Expert Witness
The National Flood Insurance Program (NFIP)
Created by Congress in 1968, The National Flood Insurance Program (NFIP) is the largest single peril insurance program in the world. FEMA contracts with over 100 “Write Your Own” (WYO) insurance carriers to administer underwriting and process claims. With only one peril to insure and carriers to help, insuring against flood loss should be simple – but that’s not always the case.
Residential Property under NFIP
Under NFIP, the scope of flood coverage for residential properties depends on specific factors. NFIP maximum limits for residential property are $250,000 building and $100,000 contents. Replacement cost building coverage is available only for a single-family dwelling used as the insured’s principal residence. While homeowners policies typically provide replacement cost for contents, NFIP offers only Actual Cash Value (depreciated) coverage. Additional living expense covered by homeowners insurance is excluded in NFIP flood policies.
Commercial Property under NFIP
The scope of commercial property coverage under the NFIP is also contingent upon certain regulations. Commercial property is eligible for NFIP coverage up to $500,000 each building and $500,000 contents. Replacement cost valuation and Business Income are not available for NFIP commercial flood policies. NFIP Increased Cost of Compliance is limited to $30,000, and is substantially different than Ordinance or Law coverage available on standard property policies.
Excess Flood Coverage
Excess Flood coverage, offered by insurance carriers for both residential and commercial properties, must be structured with utmost care. Because excess flood policies contain different coverage terms and conditions than do NFIP policies, claim disputes may result when coverage is improperly coordinated. Thus, structuring policy terms of Excess Flood above NFIP limits is critical.
Possible Complications of Flood Coverage and Claims
Other factors that potentially complicate coverage and claims include:
- Excess Flood policies may cover Business Income, whereas underlying NFIP policies exclude Business Income coverage.
- Excess Flood carriers may offer replacement cost coverage, whereas NFIP primary policies use actual cash value.
- Accuracy of flood zone determinations consistently improves with computer technology; what happens when updated Flood Insurance Rate Maps (FIRM) change a policyholder’s flood zone elevation?
- “Concurrent causation” arguments wind through insurance departments and the courts.
- Flood losses in the U.S. average more than $2.5 billion annually, with 30% of losses occurring in low flood risk areas.
- Flood devastation (from hurricanes like Katrina and Ike) overwhelms emergency responders and insurance adjusters.
Our Experience with Flood Coverage
Along with numerous expert witness engagements, Mr. Daniel’s background includes placing flood insurance as an agent. His familiarity with technical coverage issues can help bring clarity to convoluted flood insurance claims and litigation. We welcome your telephone call to determine if his expertise could help facilitate your case.
We welcome a call to discuss your specific case issues: 817.980.4897.
Flood Insurance Expert Witness Cases
Cases are listed only after we are disclosed as an Insurance Expert to opposing counsel.
November 2010 – Designated by policyholder counsel as their Agent Errors & Omissions and Flood Insurance expert. Case involved NFIP policies issued using non-FEMA flood zone maps and adverse consequences to policyholder. Hometex v.. James Hooten and McMullan Insurance Agency; Cause No. BA-CV-05-0012; In the 216th Judicial District Court of Bandera County, Texas. Attorney Charles Japhet, (210) 775-1881.
May 2010 – Designated by defense counsel as their Flood Insurance and Agent’s Errors & Omissions expert. Litigation involved Hurricane Ike flood claim disputes. Pleadings included allegations against the agent of Insurance Bad Faith and failure to procure Business Income. Attorneys Aaron Rankin & Brendan Cook, Baker & McKenzie , (713) 427-5000. South Coast Cement v. Willis of Texas, et al; Cause No. 60,687 in County Court at Law Number 1, Galveston County, Texas.
February 2010 - Retained by defense counsel for insurance agency as Agent Errors & Omissions, Homeowners and Flood Insurance expert. Case required expertise as to the effect revised FEMA flood zone maps have on available coverage. Seale v. Lyons Insurance Agency, No.: 2007-6427, 14th Judicial District Court, Calcasieu Parish, Louisiana. Attorney David Calogero, Davidson Meaux Attorneys, (337) 237-1660.
October 2009 – Designated by counsel for policyholder as their Flood Insurance and Property Insurance Expert. Case required analysis of excess flood Business Income, funding excess flood deductibles with NFIP policies, and the effect of ‘Other Insurance’ policy language. Attorney Wendy O’Connor, Tallman, Hudders & Sorrentino, P.C., (484) 765-2274. Pine Grove Manufactured Homes v. Indiana Lumbermens, et al; Civil Action No. 3:08-CV-1233, US District Court for the Middle District of Pennsylvania.
August 2008 –Designated by plaintiff counsel as a Flood Insurance and Property Insurance Expert. Flood claim was denied after Tropical Storm Allison flooded a large apartment complex in Houston, TX. Provided coverage analysis for Agent Error & Omission, Business Income and Surplus Lines Insurance coverage issues. Meg Las Villas v. United States Fire; Cause No. 2007-54444, Harris County, TX. Attorney Paul Allred, (214) 528-9560, Sullivan & Holston.
July 2007 - Designated as Business Income and Property Insurance Expert by plaintiff counsel regarding coverage denial for Flood and Windstorm, damages resulting from Hurricane Katrina. Delta Land & Title v. State Farm Insurance Company; Civil Action 06-5374; Section L, Mag. 1; United States District Court for the Eastern District of Louisiana. Attorney Peter Koeppel (504) 598-1000
April 2007 - Selected by defense counsel as their Property Insurance Expert to provide analysis and testimony regarding and Insurance Bad Faith. Case required expertise in Business Income, Flood Insurance, Surplus Lines & Ocean Marine Insurance. Litigation resulted after damage due to Hurricanes Jeanne and Francis and subsequent claim denials. Attorneys Larry Montgomery & Lee Chase, Glankler Brown, PLLC ( 901) 525-1322 . Dyer Investment Company, LLC, et al v. Marsh & McLennan Companies, Inc. et al, and Certain Underwriters at Lloyd's, Case No. 05CV2812-D/P in the United States District Court for the Western District of Tennessee Western Division.
January 2007 - Engaged by counsel for plaintiff as an expert for Property, Flood, and Business Income Insurance and to assist with carrier Bad Faith claims issues. This case involved Flood Zone determinations and prior Flood claim payments. Attorney John Gabroy - Gabroy Rollman & Bosse, PC (520) 320-1300. Eurofresh v. Travelers Indemnity Company; US District Court for The District of Arizona, Tucson Division, No. CIV 04-6 79 TUCRCC
May 2006 - Engaged by counsel for plaintiff to assist with Agent Errors & Omissions and Homeowners claims issues in regard to Excess Flood Insurance. Attorney Peter Koeppel - Best Koeppel Attorneys (504) 598-1000. Best v. Independent Insurance Associates, Inc., Civil District Court for the Parish of Orleans, State of Louisiana; No. 05-13441, Division “H”, Docket No. 12.; Best v. Independent Insurance Associates, Inc. and Employers Reinsurance Corporation; United States District Court, Eastern District of Louisiana; No. 06-1130, Section “C”, Magistrate 5.
Return to Top
Burl Daniel, CPCU, CIC, CRM | 817.980.4897 |
burl@burldaniel.com
|
