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Special Allocated Loss Adjustment Expenses (SALAE) Overview

These expenses are normally reimbursed to a WYO Company and the NFIP Direct Servicing Agent on the basis of the NFIP Fee Schedule. FEMA recognizes that a WYO Company will sometimes incur extraordinary expenses in the handling of a claim.

When justified, these extraordinary expenses will be reimbursed to the WYO Company as a SALAE.

Types of SALAE

A Special Allocated Loss Adjustment Expense is defined as any incurred loss adjustment expense related to a claim other than those paid using the applicable Adjuster Fee Schedules. FEMA has defined four types of SALAE:

  • Expert expense (Categories: Engineer, Surveyor, CPA, Salvor, etc.) incurred to adjust a specific claim.

  • Adjuster expense, in excess of the applicable NFIP Adjuster Fee Schedule, incurred to establish coverage on a specific claim, or to otherwise facilitate the adjustment.

  • Litigation expense incurred to defend a suit within the scope of the Financial Assistance/Subsidy Arrangement (Appendix A Part 62) (Arrangement) brought against the Company on a claim under a WYO policy.

  • Cost of appraisal under the Standard Flood Insurance Policy Appraisal Clause, or cost of examination under oath.

FEMA approval is required for all SALAE Types regardless of dollar amount.

For guidance on SALAE processes, refer to the Claims Manual - Section 46 Special Allocated Loss Adjustment Expense (SALAE) Processes – page 280 to 289.

Where to submit SALAE:

Write Your Own (WYO) Companies, the NFIP Direct Servicing Agent, and/or Vendors should submit requests through FEMA’s Underwriting and Claims Operation Review Tool (UCORT) by navigating to https://www.nfip.fema.gov/Default/Login.

Send questions about the UCORT tool to FEMA-UCORT@fema.dhs.gov

FEMA will review the request and provide an electronic response. Please ensure the SALAE request form contains all required information to facilitate a timely response.