To help New Jersey property owners who have suffered damage caused by the recent severe flooding and storms across the state in recent weeks, the New Jersey Department of Banking and Insurance is providing guidance on filing insurance claims for storm-related damage.

On July 14, flooding from rainstorms in New Jersey caused Gov. Phil Murphy to declare a state of emergency due to flooding. Rail service on the New Jersey Coast Line was delayed because of weather-related wire issues. Flooding was high in Central Jersey along the Route 22 corridor in Watchung, Plainfield, North Plainfield and Somerville.

Route 22 was closed in North Plainfield, as was Route 28 in Middlesex. Two people died in Plainfield.

“The recent storms and flooding in New Jersey have caused significant damage to many homes, businesses, and vehicles,” said Commissioner Justin Zimmerman. “The Department is providing guidance to assist residents in filing auto or homeowners’ insurance claims in order to begin the restoration process. We also want to remind residents that if they have concerns or issues related to their insurance claims, the Department is here to help.”

Homeowners insurance protects homeowners from damage to their home, other structures like detached garages, storage sheds and fences, as well as personal property like furniture. Homeowners insurance policies exclude water damage caused by flooding, as do most renters insurance policies. Only flood insurance covers a person’s home and their personal property from floods.

Damage to a personal or commercial vehicle from flood or other damage, such as falling trees, is covered under an auto policy’s optional comprehensive coverage (also known as comp or “other than collision”). If you do have comprehensive coverage, contact your agent or company to file a claim. If you only have liability coverage, your insurance company will not cover damage to your vehicle caused by flood.

Filing a claim

Call your agent or insurance company as soon as possible to report your loss. Have your policy number ready along with any relevant information, and be ready to record the claim number, contact information for the assigned claim representative, and any important information about your claim. Ask your agent or insurance company what documentation you will need to provide. If you have any questions, your agent or insurance company will assist you.

Document damage

Consumers/business owners are recommended to take pictures of all damaged property before disposing of it and, if possible, retain the damaged property until the insurance company either inspects it or advises that it can be disposed of. Consumers/business owners should ask the insurance company how to proceed, as in most cases the company will require the damaged property to be physically available for inspection.

Make necessary repairs 

If your property has been damaged, it is important to make any necessary temporary repairs to protect it from further loss or damage. If windows are broken, have them boarded up to protect against vandalism or weather. Save all receipts or bills to submit as part of your claim.

Work with a claim adjuster 

Your insurance company will assign a claim adjuster to inspect the damages and determine coverage. You should cooperate with the adjuster and keep written notes about conversations regarding your claim. The company should provide you with a copy of the damage estimate and if you request it, give you the name of a contractor who will do the work at the price estimated. You are not required to use the company’s recommended contractor. If all or part of the loss is not covered, the company must explain how coverage is excluded under your policy.

Understanding public adjusters 

Public adjusters, licensed by the Department of Banking and Insurance, are professionals that may be hired by insurance policyholders to appraise damages to their property and negotiate their insurance claims. They are paid from the proceeds of a policyholder’s claims settlement, typically a percentage of the total amount received. State regulation requires that public adjuster contracts specify a list of services to be rendered and the maximum fee to be charged, “which fees shall be reasonably related to services rendered” and should not be excessive. Public adjusters are not required for an individual to file or resolve claims with an insurance company. Consumers with questions about the process can contact the department.

Resolving disputes 

If you and the insurance company do not agree, first try to resolve your issues with the company. Sometimes it helps to have your contractor speak directly with the claims adjuster. If you cannot resolve the dispute with your insurance company, you can contact the department’s consumer hotline at 1-800-446-7467 (8:30 a.m. to 5 p.m. EST Monday-Friday), or visit the department website and click on Consumer Assistance – Inquiries/Complaints.

Understand flood insurance

Flood insurance is not part of most homeowner insurance policies, as well as policies for businesses, condominium owners and renters. Consumers can purchase a flood insurance policy from the federal National Flood Insurance Program, which operates as the primary provider of flood insurance for residential properties. Private flood insurance is also an option. Consumers can find companies offering flood insurance in New Jersey at nj.gov/dobi/division_consumers/insurance/homeownercontacts.htm#flood.