Tenn. Insurers Told to Offer Payment Grace Period After Storms

Storm damageHome and auto insurance policyholders who have seen property damage or injuries as a result of recent catastrophic storms in Tennessee can request from their insurers a 60-day extension on payment and renewals of policies, the state’s Department of Commerce and Insurance has announced.

The department points out in its recent announcement that the extension is not automatic — policyholders must make a specific request to their providers — and that insured Tennesseans are still responsible for paying for their coverage.

The 60-day period would begin on the date of the loss.

State Farm Mutual Automobile Insurance Co. — the company with the largest market share for car insurance in TN — told the Wall Street Journal that it had received 12,740 auto claims from the Southern and Southeastern region as of the afternoon of April 6.

Around 9,600 of those auto claims were filed in Tennessee, “where the tornado spawned hailstorms,” the Journal reported.

The Alabama Department of Insurance also asked insurers in that state to provide a similar grace period.

In Alabama, tornadoes caused widespread damage. Total insured losses in the state from the storms have been estimated by catastrophe risk-modeling company AIR Worldwide to be between $1.9 billion and $2.6 billion.

Missouri regulators reported that, after the late-April tornado that struck its state, more than 2,000 auto claims had been filed by St. Louis residents alone.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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