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NFIP Bulletin Gives Guidance on Use of SFIP Appraisal Clause

The National Flood Insurance Program (NFIP) has issued a bulletin that provides guidance for using Appraisal clause provisions in the Standard Flood Insurance Policy (SFIP)...
May 22, 2013

The National Flood Insurance Program (NFIP) has issued a bulletin that provides guidance for using Appraisal clause provisions in the Standard Flood Insurance Policy (SFIP). FEMA is issuing this bulletin to provide guidance regarding when the Appraisal clause may be used, and what the necessary conditions are for invoking it.

FEMA says the SFIP Appraisal process is a mechanism only for resolving disputes regarding the dollar amounts to be paid for flood damages covered by the SFIP. The Appraisal process cannot be used as a method to determine scope of damage, coverage under the SFIP or causation of damages.

What It Means to Agents: Bottom-line, the NFIP appraisal clause applies only when the amount of the cited dollar value of items included in the settlement is being disputed. For example, if an NFIP claims adjuster has a value of $4 per clapboard replacement and the policyholder can demonstrate the average price is really $6. If the claims dispute is for other reasons or is broader than this, other procedures are to be used as outlined in this bulletin.

w-13029 WYP Program Bulletin.May 15, 2013

FEMA has also issued another bulletin to provide claims guidance regarding coverage for structural drying under the SFIP. This revises the NFIP claims procedures for drying out structures and provides other claims related updates.

w-13025a.WYO Program Bulletin May 14, 2013

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