Marin legislator seeks disaster insurance reform
Gov.
The new law also allows insurers to provide the policy in an electronic format at the request of the policyholder if the loss is the result of a state of emergency.
Current law already requires insurance companies to supply copies of residential insurance policies following a loss. The
According to the
"The last thing survivors should have to face while rebuilding from natural disasters is insurance problems. It is important to strengthen consumer protection for survivors of these disasters," said Levine, D-
Levine has also sponsored two other bills, AB 1797 and AB 1800, both pending in the Legislature, that address a even thornier problem.
Following the 1994 Northridge earthquake, most insurers switched from offering "guaranteed replacement cost" for losses to "replacement cost" or "actual cash value" coverage. The terminology is confounding but the differences are critical.
A replacement cost policy pays for replacement only up to limits specified in the policy. It is the policyholder's responsibility to assess whether they have sufficient coverage to rebuild.
"Not surprisingly, underinsurance has been a persistent problem for homeowners since the move to replacement cost policies," wrote
AB 1797 would require insurers to provide an estimate of the cost to rebuild or replace insured structures every other year when policies are offered for renewal.
"My wife and I checked our insurance after the wildfire and found that we were underinsured like so many fire survivors in the
AB 1800 is designed to address a related issue. Some insurers offer other options, such as "extended replacement cost" coverage, which provides additional but not unlimited protected above a policy limit. Insurers may also offer "building code upgrade" coverage, which takes into account the added cost of upgrading to new building and zoning requirements -- often required to obtain a building permit.
While it is already the law that policyholders are not required to rebuild on the insured site, the
"I do think these proposals would be helpful," said
Shortall said after the devastating fires in the
"One of the things I've learned," he said, "is that something like 70 percent of the people were uninsured or not insured at all, which was a huge problem."
___
(c)2018 The Marin Independent Journal (Novato, Calif.)
Visit The Marin Independent Journal (Novato, Calif.) at www.marinij.com
Distributed by Tribune Content Agency, LLC.
Pruco Life Variable Universal Account Files SEC Form N-6, Registration Statement For Separate Accounts (Unit Investment Trusts): (Jun. 28, 2018)
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News