Insurance Commissioner Jim Donelon and House & Senate insurance committee leaders announce a package of bills aimed at benefiting homeowners affected by major storms, like Hurricane Ida last summer. Senate Bill 134 clarifies that policyholders can collect additional living expense benefits when they have to evacuate; even if an official evacuation order has not yet been announced.
“When preparing for a storm and considering what’s best for their families, our citizens shouldn’t have to worry about waiting for an evacuation order to make sure they can receive coverage for their additional living expenses,” Donelon says.
Another bill would require insurance companies to increase their available cash-on-hand for paying claims; from $3-million now, to $5-million by 2027 and $10-million by 2031. Yet another is dubbed the Three-Adjuster Rule. Senate Insurance Committee chairman Kirk Talbot says it would require companies – after a third adjuster is assigned to a case – to have a summary of the observations, activities and claim status by the previous two.
“It causes a lot of frustration. They have to start the whole process over, and they feel like no one’s paying attention to them. That they haven’t been heard and that they have to start the entire process from scratch.”
Talbot has also filed a bill to help protect policyholders from sudden cancellation or non-renewal after a claim from a named storm. It would require a full 90 days written notice of such cancellation. A House bill would create incentives for those who retrofit their homes to be more hurricane-resistant, and others offer more consumer protection for the insured. Commissioner Donelon says the package of bills will improve the overall insurance picture for all involved. The group of six insurance bills are among the roughly one-thousand to be discussed by lawmakers over the next several weeks.
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