DHS Liability Coverage 622-05-10-10-06

(Revised 10/1/2019 ML #3564)

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This policy was created by the Department to assist licensed foster parents (claimant) and others for damages to property they incur, which are caused by acts or omissions of a foster child. The claimant must file the claim, regardless of whose property was damaged. This policy is the ‘insurer of last resort” and should be used only when a private insurance policy, such as homeowners, tenants, personal automobile, personal umbrella liability insurances, or any other collectible insurance, will not cover the damages or loss.

 

Coverage:

The Department will pay for the lesser of the reasonable cost to repair or to replace damaged property incurred by a claimant and others, if the damage is caused by acts or omissions of a foster child. This coverage is subject to the following limitations:

• $100 Department deductible per claim
• $5,000 maximum payout per claim
• $10,000 maximum payout per year/per claimant

The Department will cover the difference between $100 and the amount of the deductible paid. This applies only to claims for damages, which are covered by this policy.

 

In cases where the property damage claim total exceeds $25,000 the Department may further review the claim to assess damage, actual cost, replacement cost, and incident occurrence. The Department may cover 25% of remaining personal property damage after insurance payout, not to exceed the $10,000 annual limit.

 

Exclusions:

The following exclusions apply:

• Property damage due to the operation or use of any aircraft or watercraft.
• Property damage resulting from dishonest, fraudulent, criminal, malicious, or negligent conduct on the part of the claimant, family members living in the claimant’s house, or others.
• Theft of property.
• Bodily injury of any kind.
• Injury to household pets.
• Secondary property damage caused after the incident, not by the foster child

Additional exclusions may apply as determined by the Department on a case-by-case basis.

 

Claim Procedure:

The following must be included with all claims:

1. Notification to the foster child’s case manager and the authorized licensing agent is required before a foster parent property damage claim can be submitted.
2. A completed Family Foster Care Claim of Property Damage Form (SFN 327). A SFN 327 must be prepared for each claim filed with an insurance company; multiple claims should not be included on one SFN 327.

1. A SFN 327 must be prepared for each claim filed with an insurance company; multiple claims should not be included on one SFN 327, unless previously approved by the Department.
2. If more than one incident occurs in a 24 hour period, resulting in multiple insurance claims, the Department will combine the insurance claims into one claim with one Department deductible for cases where the payout will not exceed $1000.

3. A completed and signed W-9 for payment purposes.
4. A photograph/s of the damage.
5. A letter from a private insurer denying payment for the damages claimed.
6. A written estimate by a contractor or insurance adjuster, or bill, or receipt of payment made for damages.
7. When applicable, verification of the amount paid by the private insurer.
8. When applicable, proof of the amount of deductible paid by the claimant or others.

Claims need to be postmarked within 90 days after discovery of the damage, and sent to the attention of the Permanency Administrator, Children & Family Services (CFS), North Dakota Department of Human Services.

 

A review committee consisting of the Permanency Administrator (CFS), the Chief Financial Officer (Fiscal Administration), and the Risk Manager (Human Resources), or their designees, will review the claims and make a determination within 45 days of receipt. If a claim is approved, a check will be issued within 14 days of the date of determination. If a claim is denied, the foster parents will be informed of the reason for the denial within 14 days of the date of determination. The Department will not make a determination if claims are incomplete, and are not completed within the 90-day timeframe. If approved, payment will be made to the party who incurred the damage.

 

The review committee will complete the internal state form (SFN 328) as part of the assessment for documentation purposes for the Department.