Declarations
“As a consumer protection agency, DIFS works to ensure that consumers are protected from confusing or deceptive contract language. … Consumers might not be aware that their insurer depreciates not only damaged property, but also the cost of labor to repair the damaged property.”
— Said Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox after the department released a bulletin prohibiting insurers from discounting labor costs for depreciation when paying a homeowners insurance claim unless the insured has agreed in advance to the reduction in exchange for a lower premium. Beginning next year, consumers who incur a covered loss to their home will not have labor costs discounted from their claim payment due to depreciation unless the consumer chooses that coverage in exchange for a lower premium.
“This new collaboration offers a solution to the broken insurance market, a critical step to making sure New York encourages the creation and preservation of more affordable housing statewide.”
— Rachel Fee, executive director of the New York Housing Conference, said about Vermont-based captive insurer, Milford Street Association Captive Insurance Co., that promises to provide insurance for New York affordable rental housing buildings at a time when advocates say coverage is difficult to afford or obtain. The captive will be owned by its member premium payers and will provide insurance only to New York affordable rental buildings that have a regulatory agreement limiting rents and receive public financing.
“While consumers received coverage with no value, Fifth Third Bank profited.”
— The Consumer Financial Protection Bureau (CFPB) said in a statement about the settlement with Cincinnati, Ohio-based Fifth Third Bank over its practice of illegally forcing vehicle insurance onto borrowers who already had coverage. Fifth Third agreed to pay a $5 million fine for demanding borrowers pay for coverage they did not need and to pay a $15 million fine for illegal sales practices. The CFPB estimates that Fifth Third’s actions harmed 35,000 consumers, including about 1,000 who had their cars repossessed.
“This is a complicated rate filing where Allstate is switching complex wildfire models and introducing its wildfire mitigation discounts in compliance with the commissioner’s Safer From Wildfires regulation. … The rate filing is currently under review by the Department.”
— Said a statement from the California Department of Insurance regarding Allstate’s filing seeking to increase its homeowners insurance premiums in California by an average of 34%. According to reports, it would be the largest rate increase this year and would impact more than 350,000 policyholders. Allstate stopped issuing new California homeowners insurance policies in 2022, but it still insures many existing policyholders.
“As seen from pre-season forecasts, oceanic conditions in the North Atlantic were primed for storm activity. … With both sea surface temperatures (SSTs) and oceanic heat content at or near record levels across much of the tropical North Atlantic and Caribbean Sea, these environmental conditions were favorable for Beryl’s development.”
— Sarah Hartley, director of Moody’s RMS Event Response, said in the aftermath of Hurricane Beryl. Unusually warm water is a major intensifier of hurricanes and likely contributed to Beryl’s strengthening into a Category 5 storm. Beryl was the first major hurricane of what forecasters expect to be an “extremely active” Atlantic Hurricane season.
“State policymakers should consider extending the program or establishing a longer program to encourage home hardening among all homeowners. … Home hardening helps prevent future damage, thereby limiting risk for insurers and, in turn, limiting the growth of premiums.”
— Florida Tax Watch, a nonprofit government watchdog in operation for 45 years, said in an analysis of the Florida property insurance market. The group called for more home-hardening considerations and is urging state lawmakers to expand wind-mitigation tax breaks for homeowners struggling with higher insurance premiums. A sales-tax exemption on impact-resistant doors and windows expired at the end of June, the report noted.