House commission to study coastal insurance

PROVIDENCE – A special commission established by the R.I. House of Representatives to study the effects of natural disasters on property-insurance costs and requirements is slated to discuss new homeowners’ insurance regulations at a meeting on Wednesday, Jan. 9.
The regulations – issued by the R.I. Department of Business Regulation on Nov. 29 – require insurers to fully explain to their customers any applicable hurricane deductibles, triggers and coverage, and to assist each customer in finding the best coverage for his or her home.
The regulations would require insurers to offer their customers two practical examples of how their deductibles work. The House panel’s announcement said legislators included this requirement in the law because their study has shown considerable confusion among consumers about their deductibles.
The statute also bans insurers from charging storm deductibles higher than 5 percent, and requires insurers to support the amounts of all deductibles, waivers and credits with actuarial evidence.

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