Home » News
Filter by category:

Affected by the Derecho windstorm? These FAQs offer claim handling tips.

 

The “Derecho” windstorm that swept across Iowa and other Midwestern states on August 10, 2020, caused severe, unprecedented, and widespread property damage. In Iowa alone, the estimated total loss may be close to $4B in damages.

You may have suffered property damage to your business, and have questions regarding your insurance coverage.  Below are some helpful FAQs to consider:

How should I notify the insurance carrier of my loss/damage?

You may contact the carrier directly, or request that your agent contact the insurance carrier on your behalf. If you are a FUELIowa Insurance Program Insured, you may report a claim using EMC’s 24-hour claim reporting hotline at 888-362-2255. You will need the following helpful information:

  1. The date of loss.

  2. What was damaged and/or who was injured.

If an employee is injured, make sure that proper medical treatment is sought immediately, and that a “first report of injury” is filed immediately with your workers’ compensation carrier.

  1. The location of the damaged property.

  2. Who will be the contact regarding the claim at the business.

What do I do about cleanup and salvage?

If the building and business personal property are insured, there will typically be a coverage extension to pay for debris removal (not including pollutant cleanup) of covered property.  This limit may vary by carrier and by insured, depending on the coverage purchased.

  • Be careful to make sure the debris removal is handled properly.  Certain building materials or soil may contain pollutants that require special handling and disposal.

    • Coverage for cleanup of pollutant expense under a property policy may be provided for covered specified perils (including windstorm) subject to a sub-limit.

  • Tree removal is only typically covered if the tree is obstructing the repair of a building (e.g., the wind blows a tree onto the roof of a building).

  • If the damaged property presents a safety hazard, prevent access to the building or premises.

  • Dispose of any perishable food items if damaged due to power outage. Retain inventory records of any disposed items. Note that certain carriers may provide spoilage coverage of perishable items due to damage from a utility interruption.

  • Ask your insurance carrier if you may dispose of any potential salvage. Carriers do retain title to any salvage after payment is made to the insured for a loss.

May I proceed with contacting repair contractors?

Yes, you may. Keep in mind that the insurance carrier is only providing payment proceeds for the covered loss or damage, you have the responsibility of repairing your property.  Note the insurance payment will be subject to the terms and conditions of the policy in place at the time of the loss.  Payment may be affected by the actual extent of the damage.

  • Was the property insured on an actual cash value or replacement cost basis?

  • Replacement cost loss payment, if applicable, will only be made if the property is actually repaired or replaced.

  • You may receive an initial payment of the covered loss based on the actual cash value of the loss/damaged property until actual repairs or replacement is completed.

  • The carrier will typically not pay for any “betterments” of the property.

  • A deductible will typically apply.

Do I have any coverage for the loss of income I have or will incur?

Only if you purchased loss of business income coverage on the covered property location.

  • Coverage may be provided on an “actual loss sustained” basis during the period of restoration of the covered property, or with limit of insurance for the loss of business income during the period of restoration.

  • Typically, there will be a “waiting period” (hourly deductible) to satisfy prior to coverage applying.

  • Dependent on your policy terms and conditions, you may have coverage for loss of business income due to off-premises utility interruption due to a covered loss.

Please contact EMC Insurance Companies at 800-362-227, or LMC Insurance & Risk Management at 800-677-1529, if you have further questions regarding the FUELIowa Insurance Program.







RINAlliance Seneca Companies Unified Contracting Services AssuredPartners HEALTHAlliance Renewable Energy Group EMC Insurance PMMIC Insurance Cylinder Express Altria Otter Creek Country Stores, Inc HTP Energy Molo Petroleum Rainbo Oil Company Westmor Industries Midwest Petroleum Equipment MAST ATM Philip Morris International GROWMARK Energy Seneca Tank Flint Hills Jet Gas Sinclair Valero Delta Dental Atlas Core-Mark BP Cenex Phillips 66 McGowen, Hurst, Clark & Smith PC Reif Oil Federated Insurance Wellmark Central Bank Olsen Fuel Supply Community Oil Company Mulgrew Oil Elliott Oil Company WorldPay McDermott Oil Co
PMCI Facebook PMCI Twitter PMCI LinkedIn
Home   |    About FUELIowa   |    Site Map   |    Privacy   |    Contact Us   |    ©2019 FUELIowa, All Rights Reserved
10430 New York Ave., Suite F, Urbandale, IA 50322-3773   |    P. 515.224.7545   |    F. 515.224.0502
Home
About FUELIowa
Site Map
Privacy
Contact Us
10430 New York Ave., Suite F, Urbandale, IA 50322-3773
P. 515.224.7545
F. 515.224.0502
©2019 FUELIowa, All Rights Reserved