Maria Deverant’s home was damaged by "Allison," a Tropical Storm on June 16, 2001 and, three days later, she sent her insurer, Selective Insurance Company, a notice of loss. Deverarnt was told by Selective that an outside (independent) adjuster would be assigned to her claim. Selective covered Deverant’s home as a WYO (Write Your Own) participant in the National Flood Insurance Program (NFIP). Selective’s independent adjuster inspected Deverant’s home and asked her to sign a proof loss which contained a damage estimate of less than $2,000. Deverant refused.

Deverant’s attorney contacted Selective’s outside adjuster, advising that he could document damages exceeding $30,000. The letter to the adjuster was accompanied by supporting material. Later, in August 2001, Selective received (from Deverant) a copy of a loss estimate of slightly over $37,000. The estimate was completed by a Federal Emergency Management Agency (FEMA) inspector who visited Deverant’s damaged home.

In September 2001, Selective denied Deverant’s claim after receiving a proof of loss notice of around $36,000 from her legal representative. The insurer told the insured that she did not qualify for coverage since the loss notice wasn’t received within 60 days from the loss date. The 60-day notification requirement was included in the provisions of the Standard Flood Insurance Policy. Deverant sued Selective, arguing that she substantially complied with the loss reporting requirements. Selective asked for a summary judgment.

The court focused upon their duty to strictly adhere to the policy wording since the coverage was issued as part of the NFIP. It noted that the participating insurer, Selective, had no control over the implementation and interpretation of the program and policy. In this instance, the court, while recognizing the value of the loss information and documentation submitted by Deverant, noted that it was not supplied via the required NFIP property loss notice. The court granted summary judgment in favor of Selective, holding that their claim denial was proper.

Maria Deverant, Plaintiff v. Selective Insurance Company, Incorporated, Defendant. United States District Court for the Eastern District of Pennsylvania. No. 02-CV-3801. Filed January 7, 2003. CCH Paragraph 9032.