Claims News Service, Sept. 23, 4:05 p.m. EDT - In the wake of Hurricane Katrina, the National Flood Insurance Program is modifying the way it settles claims to expedite the response to those policyholders in storm-stricken areas.

The NFIP is utilizing all available data on water depths, aerial imagery, and information from underwriting files, to determine properties where it is readily apparent that flood damage covered by the policy will exceed the amount of insurance purchased. It will be possible to pay the policy limits through dialogue with the insured and without waiting for a site visit to adjust the loss. This process may be used when homes have been washed off their foundations, affected for long periods by standing water, or when only pilings or a slab remain.

The NFIP is waiving the usual requirement that the policyholder must submit a proof-of-loss and instead where the policyholder agrees, will rely on a report by the claim adjuster. The NFIP is urging insurance companies to provide advance checks of $3,000 to policyholders who carry contents coverage. Adjusters have been instructed to assist policyholders in developing a list of their contents and appliances damaged by flood waters. Serial and model numbers are not needed, and a list of contents by major grouping may be submitted, rather than a comprehensive list.