Division of Insurance Announces Emergency Insurance Procedures

BOSTON — The Baker-Polito Administration’s Division of Insurance (Division) announced guidance and emergency procedures for insurance carriers following the gas explosions in Andover, North Andover and Lawrence.

The Division has advised all insurers to promptly investigate all claims, including the investigation of the causation of loss to ascertain if coverage exists on a claim-by-claim basis. Insurers should also establish expedited claim processing procedures and simplified claim reporting forms where appropriate. Insurers denying claims must also provide residents and businesses with proper documentation as quickly as possible to allow affected consumers an opportunity to apply for any disaster assistance, where available.

In light of the significant damage to homes in these communities, insurers should offer extensions to claimants who have been displaced as a result of the disaster if they are unable to meet reporting timelines or other requirements that are specified in their insurance policies or otherwise. The Division encourages insurers to provide prompt and immediate relief to those policyholders impacted by the disaster, including the temporary suspension of premium payments and suspension of vacancy provisions for those temporarily displaced. Insurers are also encouraged to work with policyholders with regard to the collection of premiums, including the granting of requests for reasonable payment plans.

Insurers should not attempt to re-rate, cancel, non-renew, or refuse to provide insurance coverage due solely to a policyholder’s status as a victim of this incident or as an evacuee of this disaster.
Insurers are also expected to refrain from changing policyholders' rating classifications or increase their insurance rates solely because they are victims of this incident or evacuees of this disaster.
Affected consumers are encouraged to review their insurance policies and know their responsibilities in the event they need to file an insurance claim.

Consumers are advised to:

• Report claims to your insurance company as soon as possible. Independent insurance agents should be notified of any claims as well.
• Protect any damaged property to the extent you can to prevent further damage and salvage what you can.
• Note and photograph all damage and losses. Back-up your claim with written estimates and receipts. This will assist in settling claims.
• If temporary housing is necessary, check your policy for Loss of Use coverage. Your policy may cover such expenses up to a stated amount.

The bulletin can be accessed here: www.mass.gov/news/bulletin-2018-05-emergency-procedures-related-to-the-damages-arising-from-the-gas-line

More information for consumers, including frequently asked questions following a disaster, is available on the Division’s website: www.mass.gov/service-details/disaster-information

The Division of Insurance is an agency within the Office of Consumer and Business Regulation. Consumers are urged to visit the Division’s website at www.mass.gov/doi. Questions regarding claims-related issues should be directed to the Division’s Consumer Hotline at (617) 521-7794 or (877) 563-4467 (Toll Free).

The Baker-Polito Administration’s Office of Consumer Affairs and Business Regulation along with its five agencies work together to achieve two goals: to protect and empower consumers through advocacy and education, and to ensure a fair playing field for all Massachusetts businesses. The Office also oversees the states vehicular and customized wheelchair Lemon Law Arbitration Programs, data breach reporting, Home Improvement Contractor Program, and the state’s Do Not Call Registry. Follow the office at its blog, on Facebook, and on Twitter @Mass Consumer.