For Immediate Release:	Contact:
December 6, 2006	Chrissy Pearson
	Kristin Milam
	(919) 733-5238
Columbus County Tornado Victims Reminded of Disaster Mediation Program
Disputed Homeowners Insurance Claims from November Tornado may be Eligible for Mediation
RALEIGH -- Homeowners in Columbus County who suffered property damage from the Nov. 16 tornado may be eligible for a new Department of Insurance program designed to help them resolve disputes with their insurance companies, Insurance Commissioner Jim Long announced today.
The Disaster Mediation Program, which was created by a new law passed during the 2006 legislative session, is available to residential property owners who incur damage caused by a disaster that has been declared by the Governor or President. The Governor issued such a declaration for Columbus County on Nov. 17.
Homeowners who have filed insurance claims for residential property and have had those claims partially or completely denied by the insurance company can request mediation. Policyholders must make their requests within 60 days from the date on which the claim was denied. Homeowners should notify their company of the request and the company will send additional information about the Mediation Program to the claimant.
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 will not make any decision about the dispute, but rather will facilitate discussion and negotiation between the insurance company and the policyholder.
Other Program details include the following:
Only homeowners insurance claims in areas that have been officially declared a disaster are eligible. For the November 16 storm, this means Columbus County only. Commercial property policies or auto policies are not eligible for mediation. Mediation is free for the consumer. You 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.
Consumers may find additional information on the Department of Insurance Web site or by contacting the American Arbitration Association (the Mediation Program administrator) at (800) 426-8792 or checking the American Arbitration Association Web site.
-- NCDOI --