Delaware Insurance Commissioner Matthew Denn wants to restrict insurers from canceling homeowners’ insurance policies because they have made a few claims and require insurers to more fully disclose to insureds whether they have coverage for floods, theft and replacement value on their homes. He is also implementing a new law authorizing tougher penalties on insurance companies that run afoul of regulations.
One of Denn’s proposed regulations would only allow non-renewals based on claims if there has been a “substantial change in the hazard or the risk” from the time that the policy was issued, or there have been claims for weather-related damage that are the result of the homeowner not making repairs that the insurer had asked for.
Denn also wants insurers to send homeowners annual notices about potentially costly gaps in insurance coverage and what they need to do to get flood insurance, adequate theft insurance, and real replacement value of their home. The expanded disclosures from insurance companies will start in January.
Denn is implementing tougher financial penalties for insurance companies, as well as a shortened statutory time frame for responding to the insurance commissioner’s office when a consumer has made a complaint. The changes are a result of the signing of House Substitute 1 for House Bill 90.
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