Insurance policies in Oklahoma should remain in place after tornadoes, storms

Consumers affected by the tornado and severe storms in central Oklahoma need time to recover and holding off on all insurance non-renewals, cancellations and terminations will offer some small comfort in that regard, John Doak, Oklahoma’s insurance commissioner said Friday.

Doak has called for the moratorium for affected areas following the tornado and devastating storms in central Oklahoma May 19 to 20, notes a statement from the Oklahoma Insurance Department (OID).  

“Our goal is to help ensure that insurance policies that were in effect will remain in effect while numerous families go through the recovery process,” Doak says. “Many families have lost everything, so anything we can do to eliminate even the smallest stressors will go a long way in the days to come.”

Doak’s office issued a bulletin Friday requesting that insurers not cancel, non-renew or terminate coverage while the Disaster Emergency Executive Order remains in effect, thereby providing consumers time to keep their policies in force. “Any rate increases for insurance policies in affected counties dated on or after May 19, 2013 are to be deferred during the pendency of this emergency with coverage remaining in effect at the previously established rate.”

As of Wednesday, OID reported more than 4,000 home and auto insurance claims had been filed and the number was expected to rise.

The Insurance Information Institute (III) notes that standard homeowners and business insurance policies cover wind damage to the structure of an insured building and its contents when caused by a tornado or thunderstorm. Damage to vehicles from a tornado is covered under the optional comprehensive portion of a standard auto insurance policy, the III adds.

Catastrophe risk modelling firm EQECAT has estimated insured property losses resulting from the recent storm system that moved across central United States could range from $2 billion to $5 billion.

Moore, Okla., where an estimated 13,000 structures were damaged, has been a focal point of the devastation. Tornadoes have also touched down in Kansas and Nebraska, while the wider storm has hit Missouri, Iowa and Illinois.

In Oklahoma, OID anti-fraud investigators have responded to disaster sites in a number of communities to help mitigate insurance fraud during the recovering process, notes a statement from the department.

“Unfortunately, scams and criminal activity will come up as they always do in disaster situations. We are doing all that we can to provide necessary tools and support to these residents to defend themselves against fraud,” Doak adds.