A recent Washington Post article said major insurers have told the National Association of Insurance Commissioners they plan to cut out coverage for areas prone to natural disasters. Ben Riggs with Real Reform Louisiana said it’s a huge concern because wind, hail, and wildfire coverage would cost extra.
“It sounds to me like they’re talking about increasing rates and premiums AND selling you supplemental policies, not increasing rates and premiums as an offering of supplemental policies,” said Riggs.
Of the major insurers who plan to cease natural disaster coverage, Riggs said they cover about 80 percent of property owners in the country.
Riggs said the move to end natural disaster coverage has nothing to do with tort reform and policyholders suing over coverage disputes.
“It’s the increased frequency of extreme weather events and the unpredictability of these extreme weather events. Has nothing to do with storm victims holding insurance companies accountable, that’s a scapegoat,” said Riggs.
Riggs said the move is an example of someone wanting to be able to point the finger and claim they are doing something, when in reality what they are doing is taking savings out of your policy and turning it into a junk policy…
“Because you can’t hold your insurer accountable and therefore when you go to collect on your policy, that you’ve paid into for years, you’re incapable of doing it because you don’t have any leverage to hold your insurance company accountable,” said Riggs.
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