NJ Insurance Claims Guidance for Flood Damage After July 2024 Storms

New Jersey faced significant property damage from severe flooding and storms in July 2024, prompting the state Department of Banking and Insurance to issue guidance for affected property owners on insurance claims related to storm damage. Following a state of emergency declaration, disruptions including transportation delays and road closures were reported.

The Department emphasized that while homeowners insurance typically covers damage to the home and personal property, flood damage is generally excluded and requires separate flood insurance coverage. Vehicle damage from floods may be covered under optional comprehensive auto insurance, but not if the policy only includes liability coverage. Policyholders are advised to promptly report losses to their insurers, document damages thoroughly, and make temporary repairs to prevent further damage, retaining receipts for claim submissions. The insurance company will assign claim adjusters to evaluate damage and coverage, with consumers encouraged to maintain communication and documentation during the process. Licensed public adjusters are available to assist policyholders but are not mandatory for claim resolution; their fees must be reasonable and outlined in contracts as regulated by the state.

For disputes with insurers, the Department provides a consumer hotline and complaint resolution resources. Finally, the article highlights the importance of flood insurance through the National Flood Insurance Program or private options, as flood coverage is not included in standard homeowners or renters policies. This guidance reflects compliance, claims handling best practices, and risk management relevant to property insurance markets in New Jersey after climate events.