Missouri officials ask insurers to give Joplin residents more time
The Missouri Department of Insurance has sent out a bulletin to homeowners insurance companies in the state, asking them to relent on firm rebuilding deadlines for homes in Joplin damaged in the deadly tornado that hit the region this past May.
In a statement, John M. Huff, director of the Missouri Department of Insurance, said many insurers require rebuilding to be complete within six months. However, because of the widespread damage, he said there is a shortage of available contractors to complete the work, making those deadlines impossible.
"The insurance industry has done a commendable job responding to the tornado, having paid more than a billion dollars in claims so far," said Huff. "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."
He added that the state may take action against any insurers which try to enforce deadlines of less than a year.
Total insurance claims paid out as a result of the May 22 tornado are expected to reach $1.9 billion, officials say. However, The Joplin Globe has reported that up to 40 percent of the properties in some neighborhoods were uninsured or underinsured.
Related Home Insurance Articles:
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- Researchers hope to better understand tornado damage May 22, 2012
- Total costs from Minneapolis tornado reach $80 million May 21, 2012
- Analysis shows more than $2B of insurance claims from Joplin tornado May 18, 2012
- Recovery continues for Michigan tornado victims May 17, 2012
