As extreme weather events become more frequent and destructive, the role of insurance companies in climate-related crises has come into sharp focus.
As this year’s hurricane season approaches its final month, Djinaba Rickson of Terrytown, Louisiana, is still battling to recover $2,000 — roughly half her savings — in evacuation expenses from her renters' insurance company.
“Our claim handlers, and local State Farm agents, are contacting customers, assessing damage, and issuing payments to customers,” she said. “Significant additional living expenses have been and will continue to be paid in Louisiana in accordance with the terms of the policy.” Andy Renard and his wife found themselves along Hurricane Ida’s path in August. Even though their area of New Orleans was not under mandatory evacuation, they packed up their cars and two dogs and left. The newlyweds used their cash wedding gifts to cover the cost of evacuating before the hurricane hit. The couple, who married in May, said they spent more than $2,600 on food and lodging at a budget hotel in nearby Birmingham, Alabama. But State Farm declined to cover the costs, Renard said.
“Pay your policyholders what you owe them and cover the cost of temporary housing in the midst of disaster,” he added. “Help those in need.”that requires insurance companies to cover expenses incurred by policyholders because they evacuated their homes or couldn’t return because of power loss or damage. But while other insurance companies complied, State Farm has refused to cover loss of use claims submitted by policyholders outside of areas under mandatory evacuation, Donelon said.
However, Friedlander said that covering the cost of evacuations is a “great example of how the insurance industry acts as a financial first responder in times of crisis.”
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