In September, the Federal EmergencyManagement Agency (FEMA) announced Hurricane Harvey and Irmaclaim handling process for buildings insured under the StandardFlood Insurance Policy (SFIP), specifically recognizing thatcatastrophic flooding from those storms demands “fast and accuratepayments to all National Flood Insurance Program (NFIP)policyholders.

The published guidance is an effort to facilitate promptpost-inspection advance payments to policyholders. The Fact Sheet outlines the steps associated with theclaims process.

FEMA may authorize advance payments to policyholders beforeinspection by an adjuster in certain circumstances, emphasizingthat advance payments are not available for additional livingexpenses such as temporary housing after the storm.

Community association contracts

Policyholders have an obligation to minimize mold damages asmuch as possible, however coverage needs to be verified beforeengaging a mitigation contractor to perform water extraction. Westrongly advise against signing any open-ended or undefinedcontracts and all contracts should be reviewed by communityassociation counsel before the board signs off.

For water extraction or emergency services in units,associations should ensure there are separate contracts for eachunit with a clearly defined scope of work along with associatedcosts to submit to the owner's carrier. Community associationmanagers (CAMs) and board members must make an effort to contactowners before arranging to perform water extraction or removal ofcontents.

Limited period of time

If possible require the owner to separately contract for theseservices. If that is not possible, make sure your contract containslimiting language indicating that the association is only signingas an agent for the owner under its emergency powers (Section718.1265 and Section 720.316, Florida statutes).

Please note, however, emergency powers set forth in Floridastatutes are only available for the limited period of timereasonably necessary to protects the health, safety and welfare ofthose affected and to mitigate further damages or effectuateemergency repairs.

By now you should have already reported the claim if you havesuffered a flood loss — it's important to file the claim with thecarrier, not simply the agent, although in many cases the agent maysubmit the notice of claim on your behalf. The NFIP policiesgenerally require policyholders to mitigate (or reduce potential)damages by separating damaged from undamaged property and retainingcompromised materials after removal from the home for adjusterinspection. Photographs and video records are extremely helpful inestablishing the scope of loss.

FEMA reminders

Additionally, FEMA reminds those impacted that:

FEMA does not authorize individual contractors to solicit on itsbehalf. Beware of any individual contractors contacting youdirectly on behalf of FEMA to sign you up for debris removal orremediation services.

Related: The first 60 days post-Irma are critical to yourinsurance recovery

If you have any concerns about individuals representingthemselves as FEMA or would like to report fraud, please contactthe NationalCenter for Disaster Fraud at (866) 720-5721 or via emailat [email protected].

Federal and state workers never ask for, or accept money, andalways carry identification badges.

There is no fee required to apply for or to get disasterassistance from FEMA, the U.S. Small Business Administration or thestate.

Robert L. Kaye ([email protected]), is firm memberand manager of Kaye Bender Rembaum, a full-servicecommercial law firm with offices in Broward and Palm Beachcounties concentrating on the representation of more than1,000 community associations throughoutFlorida.