Insurers Offer Recovery Advice to Storm Victims in the Southeast
It was a rough start to the week for many in the Southeast as violent storms and tornadoes ripped through portions of
"Our thoughts are with those who have been impacted by this recent round of violent weather," said Logan McFaddin PCI's
Most severe weather related events like hail and tornados are covered under either a homeowners, renters or commercial insurance policy. Renters insurance covers a policyholder's personal possessions damaged by tornados. Windstorm and hail damage for cars is covered by the comprehensive coverage in an auto insurance policy.
These storms highlight the importance of always being prepared and ensuring residents have the proper coverage for their homes and businesses. The increase in storm activity in the past few days also puts a spotlight on the need to curb abuses from unscrupulous individuals and companies that capitalize on consumers during a time of need.
It's important that consumers are aware of the Assignment of Benefits (AOB) abuse. After a homeowner or driver experiences property damage from a storm like this one, dishonest restoration and repair companies convince the unsuspecting person to sign an AOB authorization. By signing that contract, the person essentially hands over all the rights and benefits of his or her insurance policy. Once the dishonest vendors have control of the insurance benefits, they team up with trial lawyers to inflate claims and then sue the insurance companies. Ultimately, those fake and inflated claims and lawsuits drive up the cost of home and auto insurance and make it more expensive to own a home or car.
The AOB scam started in the homeowners insurance marketplace and often targeted storm victims who suffered damage to their homes. Now, it's rapidly growing on the auto repair side too.
For now, consumers' best defense against AOB schemes is to fully investigate any vendor they are considering hiring to perform repairs on their homes or vehicles. Be wary of anyone who approaches you unsolicited about repairs. Ask friends and neighbors, or your insurance agent, for referrals for reputable repair companies. Insurers want their policyholders to receive quality repairs, and they care about improving the insurance marketplace and protecting
"Insurers want their policyholders to receive quality repairs, and they care about improving the insurance marketplace and protecting
PCI's Tornado Recovery Tips:
* Secure property from further damage or theft.
* Contact your insurance agent or company representative as soon as possible to report damage.
* Inventory losses and photograph damage to provide to your insurance adjustor. Save receipts.
* If you are a business owner, keep detailed records of business activity that is negatively affected due to the tornado or storm and keep a list of extra expenses during the interruption. Prepare records to show the income from the business before and after the loss.
* Many standard homeowners' and renters' policies provide reimbursement of additional living expenses when the property is determined to be uninhabitable due to a covered loss. This provision helps with paying for increases to necessary living expenses such as temporary housing and restaurant meals. In addition, extra expenses such as overnight parking and laundry services may also be covered. Additional living expense coverage does not pay for all living expenses, so contact your insurance company or agent for a list of what your policy will cover.
* Be careful about unscrupulous contractors following a natural disaster. Contact your insurer, agent or local business bureau for references on potential contractors and ask for certificates of liability and workers compensation before signing contracts.
PCI's Tornado Headquarters offers vital information for those impacted by tornadoes, as well as preparedness tips for those living in tornado-prone areas. Follow us on twitter @PCIAA and use #HaveAPlan as we continue to provide tips on what to do before and after a tornado.
Here's a list of PCI Member Company Toll-Free Policyholder Claim Numbers: http://bit.ly/PCITollFreeNumbers


House Financial Services Subcommittee Issues Testimony From National Association of Housing & Redevelopment Officials
House Financial Services Subcommittee Issues Testimony From Center on Budget & Policy Priorities
Advisor News
- Why advisors should offer retirement-longevity planning
- A hybrid approach outperforms the 4% Rule, researchers find
- The missing piece in most retirement plans
- Clients are bringing TikTok insurance advice into advisor meetings
- Embracing a family-centric approach to financial planning
More Advisor NewsAnnuity News
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
- Cayman Islands premier to meet with U.S. reinsurance regulators
- Investigation finds deceptive sales, churning of annuities targeting postal workers
- Corebridge annuity sales slip ahead of Equitable marriage
- California teachers settle class-action lawsuit over in-plan annuity fees
More Annuity NewsHealth/Employee Benefits News
- PRIOR AUTHORIZATION METRICS PROVIDE NEW INSIGHTS INTO INSURER PRACTICES, BUT GAPS REMAIN
- Healthcare costs are a potent political issue in Georgia, but more for Democrats than Republicans
- Sources say Mangione expected to plead guilty
- NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES INTRODUCES GUIDANCE AND PROPOSED REGULATION TO STRENGTHEN NEW YORK'S SURPRISE MEDICAL BILL RESOLUTION PROCESS
- Luigi Mangione, facing stalking charges in federal court, is expected to plead guilty
More Health/Employee Benefits NewsLife Insurance News
- AM Best Affirms Credit Ratings of PT KB Insurance Indonesia
- Westaim Reports Q2 2026 Results for the Quarter Ended June 30, 2026 and Leadership Update for Ceres Life Insurance Company
- Bismarck man convicted of insurance fraud involving dead wife sentenced to prison
- Insurers, rating firms push back on NAIC credit rating oversight plan
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
More Life Insurance News