August 24, 2017

Cassidy, Kennedy Request Extension of National Flood Insurance Program Proof of Loss Deadline

Today, US Senators Bill Cassidy, MD (R-LA) and John Kennedy (R-LA) sent a letter to FEMA, requesting the September 1st deadline for National Flood Insurance Program (NFIP) policyholders to file a Proof of Loss (POL) claim be extended. Policyholders have faced delays in filing original and supplemental POLs associated with the Great Flood of 2016 that affected thousands of Louisianans.


“This was a disaster. Some homeowners have been unable to get their records in a timely fashion from contractors,” said Dr. Cassidy. “We shouldn’t punish them—we should give them help. Extending this deadline gives them help.”


“The flood hit people in Louisiana suddenly, catching them by surprise. We need to give flood victims as much time as possible to determine their losses,” said Sen. Kennedy. “I’m hopeful FEMA will give folks just a little more time since they are still reeling from this disaster.”


To read the letter, click here.


On June 6, 2017, Cassidy introduced legislation to reauthorize the NFIP which included a provision to extend the 60 day proof of loss submission deadline to 180 days.


Reforming Proof of Loss requirements. The bill changes the way Proof of Loss functions. Some legal teams representing the WYO companies applied this definition in a draconian way.  As it currently stands, homeowners have to submit a Proof of Loss within 60 days that requires them essentially to present all of their evidence of damage.  This burden is not fair, particularly because homeowners generally rely entirely on the WYO to figure out the scope of damage and draft the Proof of Loss statement.  We change the 60-day Proof of Loss requirement to a loss notice provision. It gives the WYO timely notice and plenty of time to give a fair estimate.


Sec. 601. Institutes Deadlines for NFIP Claims Determinations. Requires NFIP administrators to make determinations on flood claims within 30 days of the initial filing, followed by any payment owed under the claim. Prevents claims denial based on Proof of Loss requirements. Establishes notice of a claim deadline within 60 days and moves the proof of loss deadline to 180 days.