Commissioner Navarro encourages caution in repairs, meets with community

Tropical Storm Isaias produced tornado activity, heavy rain and flooding, hail, and strong winds throughout the state, causing significant destruction in several Delaware communities. Insurance Commissioner Trinidad Navarro visited residents and assessed damage on Wednesday.

“While measuring the full extent of this storm will take time, we know one thing – we must come together as a community and support those that need to rebuild,” said Commissioner Navarro after touring Amberwood community in Bear, which saw extensive storm impacts, and speaking with those beginning the insurance claims process. “I understand the eagerness of every resident to clean up and make repairs, but I can’t emphasize enough the importance of contacting your insurance company first. Take photos of everything and do not make permanent repairs before working with your insurance adjuster. Make only necessary, temporary repairs to prevent additional damage. Save all documentation, pictures, and receipts.”

The Delaware Department of Insurance Consumer Services Division is working with residents who have questions or concerns about their insurance company’s actions, and can be reached at (800) 282-8611 or (302) 674-6227, or by email at consumer@delaware.gov.

Underscoring the importance of proceeding through the insurance claim and property repair process with caution, Commissioner Navarro highlighted the frequency of fraudulent activity after a storm: “Anytime we experience a big storm like Isaias, we see storm-chasing scammers pop up in neighborhoods, falsely stating they are with an insurance company, or encouraging homeowners to sign on to repair contracts without going through the proper channels – often price gouging residents, or completing shoddy repairs if they make any at all, leaving the consumer on the hook for costs that could have been covered by an insurer.”

Residents who encounter a storm-related insurance scam can contact the Fraud Prevention Bureau at (800) 632-5154 or (302) 674-7350, or email fraud@delaware.gov. Consumers are urged to carefully review contracts for home repairs, ask for references and research companies through the Better Business Bureau.

Consumers may contact the Delaware Emergency Management Agency, DEMA, to see what assistance may be available as a result of the Governor’s State of Emergency. Property insurance policyholders should be aware of the dwelling deductible stated on their insurance declaration page, and take note that there may be a deductible for named storms, wind, hail, or tornadoes that may apply to the claim, most often stated as a percentage of dwelling coverage.

Due to COVID-19 precautions, Department of Insurance offices are not currently open to the public, but residents are encouraged to contact the department at one of the emails or phone numbers above, or call (302) 674-7300 for assistance.

Provides information on insurance processes for property damage

As Tropical Storm Isaias approaches Delaware, residents are urged to prepare for dangerous winds over 55 miles per hour and up to 6 inches of rain. Storm surges, localized flooding, tree damage, power outages, and other threats to life and property are possible, according to the National Weather Service (NWS). Rain is expected Monday evening, with the brunt of the storm arriving early on Tuesday.

“As models continue to show Delaware in the path of this storm, home and business owners should take steps to reduce property damage and stay safe,” said Insurance Commissioner Trinidad Navarro. “Secure any outdoor items or furniture that could cause damage when windy conditions occur, charge your cellphones, gather emergency supplies, and make a plan about where you can take shelter away from windows at the peak of the storm. Keep in mind that roads may become difficult to navigate due to debris and tree damage, and never drive through a flooded area.”

Isaias is expected to hit Delaware Tuesday morning. Potential storm impacts include damage to porches, carports and other awnings, as well as roofing and siding, with impacts on mobile homes more significant. NWS expects uprooted or snapped trees in addition to flooding, causing impassable roadways and power outages in some places. Storm surges are likely, and tornadoes are possible.

In advance of storms, residents are urged to locate important documents, including homeowners and auto insurance policies and company contact information, as well as a complete a home inventory. If your property is damaged by Tropical Storm Isaias, contact your insurer before you clean up or make repairs, and photograph all damage. After speaking with your insurer and photographing damage, take action to prevent further damage by covering broken windows, damaged walls, or leaking roofs, but do not make permanent repairs. Your insurance company should inspect the property and estimate the cost of permanent repairs. Save all receipts and documentation, including those related to temporary repairs.

Hurricane season lasts well into the fall, and residents should make plans and take precautions now to reduce future risks, including exploring flood insurance. More than 20 percent of flood insurance claims are for properties outside of high-risk areas. Flood insurance policies typically take 30 days to go into effect. For more information about FEMA’s flood insurance program and to find an agent in your area, visit FloodSmart.gov or call 1-800-427-4661.

For more information on how to prepare your home for inclement weather, visit the Department of Insurance Disaster Preparedness page.

The Delaware Department of Insurance today released a list of consumer-friendly automobile insurer actions that are being implemented due to reduced vehicle use throughout the COVID-19 pandemic. As filed with the department, these actions represent millions of dollars being returned to or saved by policyholders throughout the state.

The following list may not be inclusive and may be updated online. The commitments below apply to only personal automobile insurance policies. Customer eligibility requirements may exist. Residents should direct questions about specific commitments to the insurer.

• AIPSO: Providing rate relief through a 15% credit on April and May premiums or a 15% refund for customers already paid in full.
• Allstate: Issuing refunds equal to 15% of March and April auto premiums. A total of 19,155 Delaware Allstate customers will be refunded well over $1 million.
• American Family: Distributing a one-time check payment of $50.00 per covered vehicle.
• American National: Providing premium relief equal to a 15% credit of April and May premium.
• Amica Mutual: Crediting 20% of the policyholder’s monthly auto premium.
• Bakers Standard: Applying a one-time 6% credit to the premium of auto policies renewing between October 1, 2020 and October 1, 2021.
• Chubb: Renewing customers will receive a discount equal to 35% of their April and May costs, an estimated $110 per vehicle. A one-time 6% credit will be applied to the premium for auto policies renewing between August 11, 2020 and August 11, 2021.
• Cincinnati Insurance: Refunding policyholders 15% of their April and May premium.
• Electric Insurance: Distributing a payback equal to 15% of three months of the policyholder’s premium, an estimated $72 per policy.
• Encompass: Issuing refunds of 15% of March and April auto premiums. Approximately 2,835 Delaware Encompass customers will be refunded about $168,882.
• Esurance: Issuing refunds equal to 15% of March and April auto premiums.
• Farm Family: Providing premium relief equal to a 15% credit of April and May premium.
• Farmers: Discounting April premiums by 25% discount or providing 25% refunds to customers already paid in full.
• GEICO: The GEICO Giveback Credit will discount renewed or newly purchased policies between April 8 and October 7, 2020 by 15%. Customers can expect to save an average of $150 on their next auto policy and $30 per motorcycle policy.
• Goodville Mutual: Issuing a Safe@home premium credit of 15% on two months of new or renewal premium. Members can choose to waive their credit and request that it be donated to local food banks, first responders, or international relief. Goodville Mutual will match donated funds up to $100,000.
• Hartford: The COVID-19 Personal Auto Payback Plan will credit customers 15% of April and May auto premiums.
• Horace Mann: The Teacher Appreciation Relief Program will credit customers 15% of two months of premiums.
• Integon Indemnity: Issuing a 15% credit on April premiums.
• Liberty Mutual: Providing a 15% refund on two months of annual premiums.
• Mercury: Refunding 15% of monthly premiums paid in April and May.
• MetLife: Crediting 15% of monthly premiums paid in April and May.
• Nationwide: Applying a one-time payment of $50.00 to each policy.
• Next Insurance: Discounting April premiums by 25%.
• NGM Insurance: Distributing a Relief Payment of $50.00 per each insured vehicle. In Delaware, approximately 899 private passenger vehicles insured will generate a total refund of $44,950.
• Progressive: Crediting back 20% of April and May premiums.
• State Farm Fire and Casualty Company: Distributing a credit equal to 27.5% of a policyholder’s premium from March 20 to May 31, 2020.
• State Farm Mutual: The Good Neighbor Relief Program will distribute a dividend of approximately 27.5% of premium from March 20 to May 31, 2020.
• Travelers: The Stay-at-Home Auto Premium Credit Program will issue a credit of 15% to April and May premiums.
• USAA: Crediting approximately 20% on three months of premiums.
• 21st Century Insurance: Discounting April premiums by 25% discount, or providing 25% refunds to customers paid in full.

Individuals who are experiencing financial hardship due to income changes related to COVID-19 and are unable to pay their premium should contact their insurance company to discuss assistance. Delaware’s insurance carriers are required to freeze cancellations and nonrenewal of policies that might have otherwise occurred due to non-payment of premiums through the duration of the Delaware state of emergency for individuals who have been laid off or fired due to the state of emergency.

Residents may be using personal vehicles to augment income through commercial use, such as delivering food or other goods. At the request of Insurance Commissioner Trinidad Navarro, many auto insurers are temporarily allowing this activity. Residents are encouraged to review their insurance company’s COVID-19 policies prior to beginning to provide delivery services.

Have questions about insurance and COVID-19? Visit the Delaware Department of Insurance FAQ page.

If you are an insurer who would like to provide or modify information included in this list, or on our FAQ page, please email Christina.Haas@Delaware.Gov.

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Premium paybacks, elimination of commercial exemptions during COVID-19 praised by Commissioner Trinidad Navarro

Automobile insurers in Delaware are taking a number of consumer-friendly actions in light of COVID-19, the Delaware Department of Insurance announced today. On Monday, Allstate announced it would embark on a premium payback program resulting in $1.5 million going back to Delaware residents. Multiple insurers have also temporarily removed their commercial use exemptions on their private passenger automobile plans to allow policyholders to comfortably gain income as delivery drivers using their personal vehicles, putting income into the pockets of thousands of eligible residents.

“As we all do our part to stay home and flatten the curve, our vehicles aren’t being used, and it makes sense for premiums to decrease or be paid back as fewer auto accidents and issues occur. Allstate’s implementation of a premium payback should be seen as a model for auto insurers serving Delawareans, and residents across the country,” said Insurance Commissioner Trinidad Navarro, adding, “I urge all auto insurers to be responsive to the COVID-19 crisis and enact consumer-friendly policies like these.”

Allstate announced Monday that they will file an endorsement to enact a shelter-in-place payback that will distribute more than $600 million to their personal auto insurance customers nationwide, including $1.5 million to Delaware residents. Paybacks will equal 15% of a customer’s March and April premiums, payable in April and May respectively.

“It’s no secret that fewer cars are on the road,” Allstate stated, “With costs going down, Allstate is working to do what’s right for policyholders…We are trying to respond quickly and decisively to get money to customers when they need it most – now.”

The company has also offered a special payment plan for individuals facing financial hardship and is offering Allstate Identity Protection to all residents through the end of the year to combat the rise of COVID-19-related scams. Allstate has extended coverage for customers using personal vehicles to deliver food and supplies during the COVID-19 crisis, a recommendation of the Delaware Department of Insurance.

In an April 1 Bulletin to Insurers, the department encouraged companies remove a typically-seen commercial use exemption from their auto insurance policies throughout the pandemic to allow residents to gain income from delivering goods using their personal vehicles. Insurers including Allstate, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, and USAA have taken this action. Residents are encouraged to check their auto insurance company COVID-19 policies before beginning to provide delivery services. While encouraging insurers to take these steps, the department is waiving notice filing fees and has committed to reviewing provided notices within 24 hours of submission.

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In consultation with the Delaware Department of Insurance, Governor John Carney today issued a sixth modification to the state of emergency that requires that insurers cease cancellations or nonrenewals of insurance policies due to nonpayment throughout the duration of the declared Delaware State of Emergency for those residents and business owners who are experiencing a loss of income. In declaring a Public Health Emergency earlier this week, the Governor specified that health insurers are to waive all prior authorization constraints for lab testing and future treatment of COVID-19. Commissioner Navarro previously recommended insurers take these actions in a bulletin to the industry.

“We are grateful for Governor John Carney’s leadership during the COVID-19 crisis. Whether it is ensuring care without delay by removing prior authorizations in the short-term, or limiting the long-term effects of the virus’s economic impact by helping people keep their insurance, this thoughtful, detailed approach is just what our state needs,” said Commissioner Navarro.

Delaware’s insurance carriers will freeze cancellations and nonrenewal of policies that might have otherwise occurred due to delays in payments through the duration of the state of emergency for individuals who have been laid off or fired due to the state of emergency or organizations who have had to close or significantly reduce business. A carrier would now be required to seek a court order before they could cancel or nonrenew any health, life, disability, property, auto, and commercial/business insurance policies.

In addition to the immediate assistance, this action helps to reduce the long-term impact of the virus on insurance, because if policies were not renewed or were cancelled, it could have hindered future insurance policy approvals or increased premium costs for those individuals and businesses due to the cancellation or nonrenewal creating a lapse of insurance.

Read the Governor’s Emergency Declaration