N.C.’s Jones, Duplin Counties Face Deadline for Ernesto Claims

The deadline for seeking mediation for disputed insurance claims arising from Tropical Storm Ernesto is fast approaching for residential property owners in Jones and Duplin Counties.

Residents with disputed property insurance claims from the summer storm may be eligible for the Department of Insurance’s Disaster Mediation Program, a service created by a new law passed during the 2006 legislative session.

Only property owners in Jones and Duplin Counties are eligible. The mediation program was created in an effort to help homeowners resolve claims disputes with their insurance companies in a fair and timely manner. During the mediation process, an independent mediator with no connection to the insurance company will be in charge of the mediation conference.

The mediator cannot make any decision about the dispute, but will facilitate discussions and negotiations between the insurance company and the policyholder. Property insurance claims in areas that have been officially declared a disaster are eligible. For Topical Storm Ernesto, this means Jones and Duplin Counties.

Commercial property policies or auto policies are not eligible for mediation. Mediation is free for the consumer. Consumers must have a disputed claim in which the insurer has denied payment in whole or in part. The dispute must be over the insurance company’s findings on the cause of the loss or the amount of the loss. The total amount of the claim, or the difference in position between you and your insurer, must be at least $1,500 (unless both parties agree to mediate a smaller claim).

Disputed claims do not include claims denied because of policy exclusions, terms or conditions, or because the policy was not in force at the time of loss. Normally, affected consumers would be required to notify their insurance companies of disputes within 60 days of the initial claim denial. This assumes a declaration of disaster occurs immediately after an event. However, after Tropical Storm Ernesto, the Governor did not declare a disaster in Jones and Duplin Counties until Oct. 10.

The Department of Insurance therefore advised insurance companies to give consumers until Dec. 10 – 60 days after the declaration – to dispute Ernesto-related claim denials.

Consumers who wish to participate in mediation should contact their insurance company. Consumers may also call the American Arbitration Association (the Mediation Program administrator for Ernesto claims) at (800) 426-8792. Additional information can be found on the Department of Insurance Web site and on the American Arbitration Association Web site.

Source: www.ncdoi.com