U.S. Department of Homeland Security
Washington, D.C. 20472
September 16, 2017
MEMORANDUM FOR: Write Your Own (WYO) Company Principal Coordinators, WYO Vendors, the National Flood Insurance Program (NFIP) Direct Servicing Agent,
and Independent Adjusting Firms
FROM: David I. Maurstad, Assistant Administrator for Federal Insurance, Federal Insurance and Mitigation Administration
SUBJECT: Special Adjuster Fee Schedule for Claims with a Date of Loss on or after August 24, 2017, through November 30, 2017
Hurricanes Harvey and Irma caused widespread flooding in Texas, Louisiana, the U.S. Virgin Islands, Puerto Rico, Florida, and the southeast United States. Due to the catastrophic impacts of these hurricanes and the increased demand for flood insurance adjusters, the Federal Emergency Management Agency (FEMA) is increasing the amount it will pay to adjust flood insurance claims.
The entire insurance industry is searching for qualified individuals to join the ranks of claims adjusters to handle losses from Harvey, Irma, and future events. FEMA recognizes the specialized knowledge required to properly adjust NFIP losses. Adjusters must know the differences between the Standard Flood Insurance Policy (SFIP) and private industry property insurance forms. They must know interpretations of coverage made by FEMA and the unique reporting requirements of the NFIP. Accordingly, FEMA maintains a list of adjusters authorized to handle NFIP losses.
There is a competitive marketplace for high-quality adjusters and those with the experience required to adjust flood claims, and the NFIP must be competitive with other insurance companies looking for experienced senior adjusters. The demand for adjusters industry-wide is high right now. FEMA will pay adjusters amounts above the already increased fee schedule to adjust flood claims. This brings NFIP claims in line with other insurance companies that have also increased payments to adjusters. This temporary move means that NFIP claimants will receive the same high level of adjustment experience of other insurance claimants—the experience they have paid for and deserve.
The Special Adjuster Fee Schedule is effective for claims with a date of loss on or after August 24, 2017, through November 30, 2017. Beginning on December 1, 2017, FEMA will revert to NFIP Adjuster Fee Schedule – 2017 Revision, issued on September 1, 2017. FEMA may use this special adjuster fee schedule at any time during the FY 2018 WYO Arrangement year to address market conditions.
The financial exhibit has been updated to accept submissions with the new Special Adjuster Fee Schedule and is attached. A cover letter, also attached, provides further details regarding the financial submission process.
Beginning with the October 2017 data submission, those Companies that are able to make the necessary system updates to account for the Special Adjuster Fee Schedule should use the Special Fee Schedule rather than the 2017 NFIP Adjuster Fee Schedule and follow the process outlined in Bulletin W-17026 to process claims transactions.
Companies unable to make the necessary system updates must follow the current process described in Bulletin W-17026 to process claims transactions.
Please distribute this information to the appropriate personnel in your organization.
Fee Schedule listed below for viewing or download.