Uae, Alabama — The property insurance industry is bracing for a big boost from a federal law that will give homeowners who have lost their home to hurricanes the opportunity to recoup their losses on their insurance policies.
The Unclaimed Property Insurance (UPI) Act, passed by the U.A.-Navy-Marine Corps-CVA-AARG, gives homeowners with a property loss the opportunity for compensation from insurers on the insurance policies of other insureds.
It will also allow insurance companies to recouce some of the losses of the homeowners if they receive a claim from the hurricane.
If homeowners receive claims, they can recoup up to 20% of the loss.
“We are very excited about this,” said David Meehan, senior vice president for policy development at InsureAmerica.
“The bill will allow insureds to recuperate the loss from a lost home, even if they lost a property.
Insurers will have to provide coverage for lost property to insureds and the policyholders who lost their homes.”
The bill was passed by both houses of Congress on Feb. 17, with the Republican-led House passing it by a vote of 327-168.
The bill has the support of the National Association of Insurance Commissioners (NAIC), the National Home Builders Association (NHBA), the Home Build and Resale Association (HBRDA), and several other companies.
This will give insurers more incentive to cover losses and will help insure against a potentially devastating hurricane that will impact more than one million U.K. homeowners.
House Speaker John Boehner said on Feb 17 that if the UPA is signed into law, he will sign it.
NAIC President Mike Geldhof said in an interview with CNBC that the new legislation will help the industry recover from catastrophic losses. “
We will now review the bill for its final passage by the House, and we will begin the process of signing it into law.
NAIC President Mike Geldhof said in an interview with CNBC that the new legislation will help the industry recover from catastrophic losses.
When insurers have to recur losses on insured policies, the policyholder can claim up to a 10% discount on the policy, according to the NFIB.
U.S.-based insurance companies and the NFIA are the main stakeholders in the UPPIA, which will provide coverage and assistance for more than 500 million homeowners in the United States, according the UMPIA.
A number of states are also looking to the UUPIA, including Florida, which has already approved a program to extend its existing UPPI coverage to more insureds, according Toppin Media Group.