Policyholders who suffer losses due to natural disasters such as hurricanes, wildfires, or tornadoes face all of the potential problems that other policyholders confront and more. Many of the Essential Protections for Policyholders that apply in other circumstances are extremely important for disaster victims as well but disaster victims need additional protections as well.
Disaster victims should have flexibility in coverage provisions and the claims process.
- Policyholders after disasters should have a reasonable time for additional living expense and for filing claims.
Disaster victims should have clear rules about causes of loss to avoid unfair gaps in coverage.
- Policyholders should be compensated for losses due to covered causes.
Disaster victims should be protected against sudden dislocations in the insurance market.
- Insurance companies may not decline, cancel, nonrenew, surcharge, or increase premiums because of disasters.