Isabel Q&A with The Sun’s Andrew A. Green

Charles H. Willard, Stevensville: I have a gazebo, wharf area and bulkhead
that were destroyed by the hurricane. I have flood insurance but was told
that there is no coverage for these items and that I couldn’t purchase any
type of coverage for these types of things. Is this correct?

Green: Unfortunately, the policy does not cover structures like gazebos and
piers, and private insurance policies don’t either. The U.S. Senate appears
likely to ask for a re-evaluation of the policy, however, so those things
may be covered in the future.

Dot Hardy, Dorchester: We were victims of Isabel in Dorchester County. We
have flood insurance and received depreciated compensation checks. My
question: Because the check was over $20,000, our mortgage company’s name
was third party and is holding funds in escrow until an inspector comes to
see final work completed. In the meantime, we have had to use our home
equity money to fund all projects. I feel they thought I was not going to
use the funds to rebuild, and I don’t believe this was fair. It’s been long,
hard months of work and labor and hardship for us having to travel from
Baltimore to Cambridge. Is this fair?

Green: Whether it’s fair or not, many people have experienced similar
problems with their mortgage holders. You might try calling the Maryland
Insurance Administration, 410-468-2000, to see if they can help persuade
the bank to release more money up front.

Cathy Howell, Edgewater: We’re demolishing our house and rebuilding. I
have heard that there are loans that are not income-related. Are these
restricted only to loans that are above 85 percent value of the new house?
Also, I’m one of many who is not happy with insurance but haven’t submitted
anything to the commissioner. What is the easiest way to submit?

Green: Part of the legislation the state just passed, House Bill 3, or HB 3,
creates a partnership with banks to provide the non-income restricted loans
you mention. The primary purpose, as you suggest, is for loans that are
above the banks’ normal limit. However, another part of the program allows
the state to subsidize the interest on those loans for a period of five
years. For more information, call: 1-866-227-2497, Maryland’s Department of
Housing and Community Development.

Linda D., Baltimore: If we have already settled for our flood insurance
payment, should we find out what software was used by the adjuster to
calculate our losses? How do we know what software should have been used?

Green: Officials with the National Flood Insurance Program will review your
claim regardless of what software was used. NFIP officials have said that
if the software, or anything else, resulted in a low-ball settlement, they
will adjust your claim. Call them at 1-800-427-4661.

Harry Curland, Annapolis: I have already signed a “proof of loss” and
received payment. Can I still appeal for higher compensation? What
documentation is necessary? What is the procedure to appeal?

Green: Yes, you can still appeal, though the NFIP is still working out the
process. NFIP is at 1-800-427-4661.

Alice Baker, Parkville: Does HB 3 make any provision for seniors whose
property is free and clear but do not have the means to rebuild. I asked
[Baltimore County] Executive [James T.] Smith Jr.’s aide but did not get an answer. Why can’t these seniors
get these loans and pay only interest until property is disposed of? I
don’t think reverse mortgages, like [Del.] Maggie L. McIntosh spoke of is the answer.

Green: HB 3 does allow you to take out the loans and pay only the interest
until the property is sold or transferred. Depending on your income, you
may not have to pay interest at all. Call 1-866-227-2497 for information.

Baltimoresun.com reader from Miller’s Island: If my house is insured for
$105,000 and insurance only paid $30,000 for repairs, now since the house
is considered to have greater than 50 percent damage and needs to be
replaced per Baltimore County Code, will the flood insurance make up the
difference?

Green: Not automatically. You need to contact the NFIP and ask them to
re-examine your claim. That number again is 1-800-427-4661.

Norma Norris, Grasonville: The flood insurance adjuster came up with a
figure of $34,000 to repair our waterfront home. This turned out to be
about half of what it cost to do the repairs. We have had to get a home
equity loan to make up the difference, but this is another financial burden
on us. What recourse do we have now to try and increase the payment to us?

Green: Again, try contacting the NFIP, 1-800-427-4661.

Baltimoresun.com reader in Edgemere: Why has the Maryland Insurance
Commission taken so long to work with insurance claims appeals that are
sent to them? After numerous calls about my claim, no one from the state has called me back. How long is this supposed to take? If our tax dollars are paying for this, maybe their pay should equal their output, which is zero.

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Green: The Maryland Insurance Administration said recently that it is now
forwarding new complaints to the NFIP on a weekly basis. However, if you
don’t want to wait for them — or don’t feel comfortable leaving your case
up to them — you can call the NFIP directly, 1-800-427-4661.

Harry Wiseman, Middle River: When my claim was adjusted, I was told that I
would only receive payment for damage from the ground to the water line
inside my house (about 3 feet of water was in my house). As a result, I
received a payment that could not possibly allow me to rebuild.
Ultimately, that forced me to sell my house “as-is.” This is something
that I did not want to do.

I am an 88-year-old man and I lived in Middle
River for over 30 years. I did not have the money to supplement the
insurance payment to rebuild. I feel that the money I received did not
reflect my actual damages caused by the flood. Would it be worth it for me
to file an appeal? If so, how do I go about doing that? Or is it too
late?

Green: It is not too late, and it sounds like the NFIP will look at whether
things policyholders were told was excluded from the policy should have
been included. You can call the NFIP at 1-800-427-4661.

Baltimoresun.com reader in Baltimore: If you missed the deadline to file for assistance from the Maryland Department of Housing and Community Development for the free grant to (in my case) mitigate against future damages, what options are available?

Green: If you have flood insurance, you may qualify for “Increased Cost of
Compliance” (ICC) coverage, through which you can get up to $30,000 to
mitigate against future damages. Try calling the NFIP at 1-800-427-4661. I
would also check with the state to see if they can still help you. Their
number is 1-866-227-2497, the state’s department of housing and community
development.

Jim M., Earlville, Cecil County: We were damaged and need to demolish and
rebuild [an] elevated home — yet the health department says we have to stay
at our current 900 square feet. What flexibility/options do we have? We’re
not interested in $100,000-$150,000 out of pocket if we end up with the same tiny
cottage.

Green: Frankly, you may be out of luck. In some cases, health departments
limit the size of waterfront homes to avoid overloading septic systems.

Ginny Zawodny, Miller’s Island: My insurance adjuster contacted a firm to
tear out and remove mold for 722 square feet. The total cost of the job
was $16,896. I was told by several contractors and Baltimore County that I
was grossly overcharged for this job. My claim of $44,000 now becomes
$27,104. This is a joke! I already signed and accepted my claim. What can
I do about this?

Green: Call the NFIP (1-800-427-4661) and explain the situation. You can
also call the state Department of Labor, Licensing and Regulation to
complain about the charge. Their number is 410-230-6220.

Sharon Harris, Baltimore: Will additional funds be allowed other than the
minimum $5,000 for repairs received from FEMA. I have rot infestation that
came with Isabel and I am in desperate need of more funds to rebuild.

Green: If you didn’t have flood insurance, HB 3 might help. Try calling
1-866-227-2497, the state’s department of housing and community
development.

Cindy Raudabaugh, Baltimore: How do I start the process of ICC and seeing
if there is any way I can have financial assistance in raising my house
after Isabel.

Green: ICC claims are part of the flood insurance system. Call the NFIP at
1-800-427-4661.

S. Fitz, Pasadena: The brick veneer on my house started cracking up after
the flood. The insurance adjuster and an engineer say it was pre-existing. They
are wrong. Is there any recourse besides suing them in court? Is the Maryland loan money available to pay the existing mortgage on my destroyed house?

Green: Call the NFIP (1-800-427-4661) about the brick. And, yes, the
Maryland loan money can be used to replace your existing mortgage and roll
all your debt together.

Lynn Vincent, Middle River: What are the eligible income levels for the HB
3? I have not been able to find if there is a maximum limit and if it is
gross or adjusted gross income.

Green: It depends on the size of your household. For one person, the
maximum limit is $64,050. For eight, $120,780. For details, call
1-866-227-2497, the state’s housing and community development department.

Catherine Rhea, White Marsh: My house was destroyed by Isabel. We are
getting a modular for $159,000. Wells Fargo, my mortgage company, has
$65,869 of my insurance money. My builder wants $44,440 up front. Wells
Fargo will only give a third of the insurance money to them. I am waiting
for SBA to reply. Maybe House Bill 3 will help. I am on pins and needles
waiting. Wells Fargo asked me to fax three more papers the other day. I
just cried. Does everyone require blood. How much paper work, phone calls,
faxing, waiting, crying, etc. is needed to finally go home?

Green: You’re not alone. Nearly everyone I talk to is about to snap from
the hurdles they’ve had to go through, and the problem with the mortgage
company is a common one. The NFIP (1-800-427-4661) may be able to mediate.

Linda Sowers, Middle River: Is there any recourse for flood victims who
have already received and signed off on insurance settlements that they
feel were not adequate?

Green: Yes. Call the NFIP, 1-800-427-4661.

Gary Schoenemann, Baltimore: Does this new program set up by House Bill 3 cover commercial properties as well as residential ones?

Green: House Bill 3 only covers residential properties. If you have flood
insurance, you might want to try reopening your claim with the NFIP,
1-800-427-4661.

David Hash, Bowley’s Quarters: We were wiped out by Isabel. We had no flood
insurance, because my original lender’s surveyor said we were not in the
A10 flood zone. Seventeen years later, our new Elevation Certificate clearly shows
we were well below the A10 elevation. Do I have a case against my lender
and/or the lender’s surveyor?

Green: You might. I suggest you contact a lawyer.

Baltimoresun.com reader in Edgemere: What is going to be done to make up
the difference of the insurance settlements and the cost to rebuild? I
don’t want a loan I need to repay, just the total of my flood insurance
policy since my house has to be torn down.

Green: Call the NFIP, 1-800-427-4661, and ask them to reopen your claim.