Massachusetts Pays $200M Insurance To Tornadoes’ Victims
Officials of the Bay State had disclosed recently that they had already paid out almost $200 million in insurance claims to tornado victims that hit the state on June 1, 2011, that devastated the central and western part of Massachusetts.
The state’s Insurance Division disclosed in their recent report that the Massachusetts Property Insurance Underwriting Association, together with the top 25 home insurance providers had responded to almost 12,000 tornado-related insurance claims filed until September 30 last year.
As for the settlement, the Insurance Division reported as of April, 2012, that for the 10,764 claims on personal, about 98 percent had already been resolved, with insurers paying for $167.9 million on damages to houses, automobiles, and other personal properties.
In addition to this, at the business property insurance, around 96 percent of the commercial property claims as result of the tornadoes had already been settled. Recorded number of claims for commercial property reached 757. It has been announced that insurance companies shelled out almost $32.4 million as payment to damages incurred by commercial properties and vehicles.
Furthermore, Massachusetts Insurance Division report explained that the delay in the claims process are due to the delays in gathering the necessary documentation, and the disputes among insurers and policy holders. Usual reasons for the disputes are the claim’s value. Experts on claims processes and the insurance industry had earlier commented that even with the relatively small amount of claims in the tornado-related incidents, the process still took some time longer than expected.
State officials pointed out the policy holders’ frustration and disappoint in the claims processes are understandable especially for those whose claims are still unaccomplished. They also acknowledge the fact the many have been dissatisfied with the time it took them to resolve such claims, the amount difference being paid to the policy holders and the necessary costs in restoring their damaged homes, business properties, and vehicles to as what it was before being devastated by the tornadoes.
However, the said report had failed to identify the number of uninsured and the underinsured personal and business properties that officials believed to be of large numbers.
Even with the lacking data on the report, the officials were still able to identify that a huge number of the majority of the affected businesses, individuals and families that filed claims due to the tornado incidents last year have already received payments for the losses they incurred including other insurance claims from the damages caused by the life-disrupting, naturally occurring phenomena.
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Keyword: uninsured and the underinsured personal and business properties
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