I recently discussed FEMA Bulletin W-17024, regarding advanced payments that may be available for policyholders with Hurricane Harvey federal flood claims.

On September 4, 2017, FEMA issued another bulletin, W- 17031a, which supersedes W-17024, to provide additional guidance on advance payments.

The prior bulletin stated that the policyholder must notify their Write your Own (“WYO”) Company in writing of a request for an advance payment. Now, the WYO Company will not only accept written requests, but it will accept verbal or electronic requests for advanced payments. To accept a verbal or electronic request for advance payment, a WYO Company must:

  1. Verify the identity of the requester.
  2. Advise the policyholder of the conditions listed under the heading “Advance Payment Guidance” on page 2 of WYO Bulletin W-17024, and
  3. Advise the policyholder that completion and signature of the Advance Payment Agreement is not required for this event.

Another change is under the heading: Advance Payment Opportunity One: Pre-adjuster Inspection. FEMA has increased the maximum amount that an insurer is authorized to offer for an advance payment, from $10,000 to $20,000.