The Office of the Lieutenant Governor late Thursday published a guide that seeks to inform residents on how to protect themselves from being underinsured, which basically means having inadequate insurance coverage, even when you believe you are fully covered.
But the how-to guide comes five months following Hurricanes Irma and Maria, and provides little recourse to residents whose insurers have knowingly sold policies that did not fully cover policyholders’ homes from storm damage.
On Wednesday, Lieutenant Governor Osbert Potter issued an emergency order to all property and casualty insurance companies licensed and authorized to conduct business in the U.S. Virgin Islands.
“The order, which is effective immediately and dated February 12, 2018, requires insurance companies to conduct a second review of each Hurricane Irma and Hurricane Maria-related claim for which a determination of ‘underinsurance’ was made,” Mr. Potter said.
The order follows an announcement of a class action lawsuit against insurance companies in the territory by Senator Alicia Hansen and Attorney Lee Rohn. Mrs. Hansen and Ms. Rohn had argued that insurance policyholders were being cheated by property insurance companies following Hurricanes Irma and Maria.
The how-to guide is here, and below.[embeddoc url=”https://viconsortium.com/wp-content/uploads/2018/02/Underinsurance-Brochure-2018-1.pdf”]