In the six months since an EF-5 tornado struck Joplin, insurance companies have paid more than $1.1 billion for nearly 18,000 homeowner, automobile and commercial property claims. But the Missouri Department of Insurance says some insurance companies are attempting to enforce unreasonable timelines for Joplin homeowners.
According to a
Nov. 21 Department of Insurance bulletin, some plans that cover replacement costs can carry a six-month time table, while others may contain limitations as long as two years. Because the tornado prevented Joplin area citizens from accessing their property while cleanup and debris removal was being performed, and contractors and materials were not immediately sufficient, the department believes six-month plans that have not been extended are resulting in unfair settlement practices.
The bulletin said the department may seek legal action against companies utilizing a timeline of less than 12 months.
"The insurance industry has done a commendable job responding to the tornado, having paid more than $1 billion in claims so far," Department of Insurance Director John Huff said yesterday in a news release. "At the same time, Missouri law requires insurers to provide prompt, fair and equitable settlements to their policyholders, and rigid deadlines may violate that law."
No specific companies were named in the bulletin or the release.
The Department of Insurance expects insurance payments related to tornado damages to approach $2 billion by the time all claims are settled, according to the release.[[In-content Ad]]
