Fla. Commissioner Prohibits Cancellation of Tornado Victims’ Policies

Florida Insurance Commissioner Kevin McCarty issued an emergency order prohibiting insurance companies from canceling personal lines insurance policies for residents affected by last week’s tornadoes in central Florida.

The order also prohibits insurers from canceling or non-renewing a policy solely because of claims resulting from the February tornadoes and extends deadlines for payment of insurance premiums and other required correspondence.

“The victims of the tornadoes have had their property destroyed and their lives turned upside down,” said McCarty. “The last thing I want them to have to worry about is whether they have insurance to cover damage to their property.”

Gov. Charlie Crist has declared a state of emergency in the affected counties, which enables the insurance commissioner to issue general orders to help cope with the emergency situation.

Pursuant to the order an insurer may not cancel or non-renew a personal residential or commercial residential property insurance policy covering property damaged as a result of the Florida Tornadoes located in Lake, Seminole, Sumter, and Volusia Counties, for a period of 90 days after the dwelling has been repaired. The prohibition also affects other personal lines insurance policies for those who sustained property damage from the tornadoes.

The order also allows storm victims to delay any required correspondence with insurers until April 15, 2007, including premium payments which became due after Feb. 1.

Source: www.floir.com