Here’s a Consumer Federation Warning on making sure you get a fair settlement from your insurance company and some possible major industry wide problems we could all be facing.
The Consumer Federation of America (CFA) warned consumers to prepare to file claims for damage resulting from Hurricane Irma and offered tips on how to get all you are entitled to from your insurance company.
Robert Hunter, CFA’s Director of Insurance and former Texas Insurance Commissioner and Federal Insurance Administrator (who ran the National Flood Insurance Program), was deeply involved in Florida in the aftermath of Hurricanes Andrew and the storms of 2004/2005. Seeing that the insurers were threatening to sharply raise rates and drop homeowners’ policies after Andrew, Hunter devised a moratorium and price freeze that Governor Lawton Chiles and the legislature adopted, keeping affordable insurance in place. After the 2004/2005 storms, when reinsurers were severely price-gouging in the Florida market, Hunter worked with Governor Charlie Crist and Commissioner Kevin McCarty to put a layer of state reinsurance in place at actuarial rates, lowering homeowners insurance premiums by 20 percent and earning tens of billions of dollars for the state.
“Our thoughts and prayers go out to the people of Florida, Alabama, the Carolinas and Georgia as they face the aftermath of this huge storm,” Hunter said. “Unfortunately, we believe that families will have to dig deeper into their pockets than ever, because insurers have been steadily increasing hurricane wind coverage deductibles and imposing other new homeowners insurance policy limitations. This shift of costs to consumers under homeowners insurance policies may take some by surprise, since disclosures are often buried in renewal paperwork that consumers may not understand or even read. Because so many consumers experienced severe claims problems in the wake of Hurricanes Katrina and Superstorm Sandy, we urge homeowners dealing with losses caused by Hurricane Irma to be vigilant with their insurance companies, including the insurers settling National Flood Insurance claims, to ensure that they receive a full and fair settlement.”
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
