The Missouri Department of Commerce and Insurance (DCI) sent a bulletin telling insurers that they should avoi
d non-renewals and cancellations for master policies issued to condominiums that experienced damage from severe storms this year.
DCI sent out the addendum on Nov. 4 after it received multiple complaints indicating that condominium complexes throughout the state have received
non-renewal or cancellation notices. The complaints refer to master policies issued to the condominium owner/association and not HO-6 policies.
“The department understands these condominiums are still in the process of negotiating th
eir damage claims with their insurance companies or are in the process of completing repairs,” the bulletin states.
DCI said in a previous Oct. 16 bulletin that homeowners whose properties were damaged by severe storms sho
uld have a reasonable amount of time to complete necessary repairs before insurers take “adverse underwriting a
ctions” such as cancellations or non-renewals. The provisions of that bulletin apply to master policies issued to condominiums.
Property owners have faced long repair delays, with most delays related to contractor or supply issues. In St. Lou
is, some delays are related to debris, which has complicated recovery efforts, DCI said.
Missouri remains under an extended State of Emergency over severe weather that started on March 14. DCI said its directive asking insurers to not issue a can
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cellation or non-renewal of a policy covering a damaged residential property will remain in effect for at least as long
s a State of Emergency exists. The State of Emergency is set to expire on Dec. 31 unless Governor Mike Kehoe chooses to extend it further.
For circumstances where coverage has not yet expired or terminated, DCI expects insurers to take necessary action
s to ensure coverage remains continuously in force, the Nov. 4 bulletin said. DCI added that in circumstances where coverage ended prior to the issuance of either bull
etin, the department expects insurers to “consider the individual facts an
d circumstances and use their best judgment in extending or otherwise reinstating coverage.”
Insurers will be asked to provide an explanation why coverage was not extended or reinstated for a policyholder in th
ose cases where a consumer complaint is filed with the Consumer Affairs Division, DCI said.