The Insurance contract is written by the insurance industry. The industry dictates the terms of the insurance contract as well as its exclusions and exceptions. The individual consumer is not able to negotiate with the insurance company relative to the terms of the contract.

The consumer who purchases flood and homeowners insurance, assumes that with the two (2) policies in place he will have no trouble relative to his property damages. However, where a consumer has both flood and wind damage, disputes often arise between the carriers as to what policy covers what damage, all to the detriment of the consumer.

Generally, the insurance industry drafts contracts that are ambiguous and therefore are unclear to the average consumer. In Louisiana, the insurer owes the consumer a duty of good faith (honesty) and fair dealing (fair settlement).

The insurer has an obligation to the consumer to adjust claims fairly and promptly and to make a reasonable effort to settle the claims with the insured within a reasonable time as outlined in the insurance code. However, due to the extreme nature of this disaster, normal deadlines for payments have been relaxed.

In most instances, the consumer does not read his policies and its exceptions and exclusions; and if he does, he does not understand the contents of the contract. However, he does believe that he is covered completely without any hassle.

In your insurance claim if you are not satisfied with your adjuster, you have the right to speak with his supervisor. You can also request a different adjuster be assigned to you to settle your claim. Due to the extreme devastation occasioned by Katrina/Rita, homeowner claims, not flood, can be mediated by Louisiana mediators at no cost to the consumer per the Commissioner of Insurance. You do not have to accept the outcome of this mediation. If you are not satisfied with the settlement, you can hire an attorney to assist you in this matter.