TRENTON – An Assembly panel advanced proposed legislation to help homeowners better understand their insurance policies – a problem that has particularly arisen after Hurricane Sandy.
The bill (A-3642) requires that the homeowner insurance consumer information brochure already required under state law contain a one-page summary of the policy.
“This summary must include notable coverage and exclusions under the policy, so that there will be no misunderstandings when consumers need to invoke their policy,” said Assemblyman Ruben J. Ramos Jr., (D-Hudson), a sponsor of the bill. “Following Sandy, many homeowners were shocked to learn some things they expected to be covered were not under their policy. It’s time for insurance companies to provide a clearer explanation.”
On Dec. 6, the Assembly Financial Institutions and Insurance Committee chaired by Schaer held a hearing to review insurance issues facing residents in the aftermath of Hurricane Sandy. One issue that arose was the many homeowners are simply not aware of what their homeowner’s insurance policy covers. This bill – released 7-0 Monday by the insurance panel – is an attempt to provide that information in a simple, easy to understand format that will hopefully allow homeowners to become more aware of their policy.