The Missouri Department of Commerce and Insurance (DCI) sent a bulletin to insurers last week stating that insurers should avoid non-renewals and cancellations for master policies issued to condominiums that experienced damage from severe storms this year.
DCI sent out the addendum on Nov. 4 after it received multiple complaints indicating that condominium complexes throughout the state have received non-renewal or cancellation notices. The complaints refer to master policies issued to the condominium owner/association and not HO-6 policies.
“The Department understands these condominiums are still in the process of negotiating their damage claims with their insurance companies or are in the process of completing repairs,” the bulletin states.
DCI said in a previous Oct. 16 bulletin that homeowners whose properties were damaged by severe storms should have a reasonable amount of time to complete necessary repairs before insurers take “adverse underwriting actions” such as cancellations or non-renewals. The provisions of that bulletin apply to master policies issued to condominiums.
Property owners have faced long repair delays, with most delays related to contractor or supply issues. In St. Louis, some delays are related to debris, which has complicated recovery efforts, DCI said.
Missouri remains under an extended State of Emergency over severe weather that started on March 14. DCI said its directive asking insurers to not issue a cancellation or non-renewal of a policy covering a damaged residential property will remain in effect for at least as long as a State of Emergency exists. The State of Emergency is set to expire on Dec. 31 unless Governor Mike Kehoe chooses to extend it further.
For circumstances where coverage has not yet expired or terminated, DCI expects insurers to take necessary actions to ensure coverage remains continuously in force, the Nov. 4 bulletin said. DCI added that in circumstances where coverage ended prior to the issuance of either bulletin, the department expects insurers to “consider the individual facts and circumstances and use their best judgment in extending or otherwise reinstating coverage.”
Insurers will be asked to provide an explanation for why coverage was not extended or reinstated for a policyholder in those cases where a consumer complaint is filed with the Consumer Affairs Division, DCI said.
Related: Missouri’s 2025 Insured Losses From Severe Weather Approaching $2 Billion
Photo: In this aerial photograph, debris is strewn about a neighborhood Saturday, April 23, 2011, in Bridgeton, Mo., following a Friday-evening tornado in the area. St. Louis’ main airport was closed for business Saturday while crews cleaned up after a tornado tore through a terminal, causing several injuries and sending people scurrying for shelter as plated glass shattered around them. (AP Photo/Jeff Roberson)
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