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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 the following SALAE Types:

  • All SALAE Type 1
  • SALAE Type 2, expenses exceeding over $500 in aggregate
  • All SALAE Type 3
  • SALAE Type 4, expenses exceeding $2,500 in the aggregate

For additional guidance on SALAE Types 1 and 3, see bulletins FEMA W-15010 and W-16045.

Where to submit SALAE:

For approval of a Type 1 SALAE for a specific claim, all 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).

SALAE Types 2, 3, and 4 are submitted to the NFIP BSA via the following methods:

Email to: NFIPSALAEMailbox@fema.dhs.gov

Fax to: 301-577-3421; or

Mail to:
Claims Administration Team
NFIP Bureau & Statistical Agent
P.O. Box 310
Lanham, MD 20706

Upon receipt of a SALAE submission, the NFIP Bureau and Statistical Agency will review it in concert with FEMA. All responses will be delivered electronically. Please ensure the SALAE request form contains all necessary return receipt information, which will facilitate an electronic delivery to the appropriate party.