In advance of expected late September flooding in the Cedar Rapids, Iowa-area, state Insurance Commissioner Nick Gerhart issued a bulletin requesting the assistance of both property/casualty and life/health insurance carriers in providing relief to insureds impacted by floods.
As of Sept. 26, about half of the 3,400 residential and 550 commercial parcels in the expected flood zone along the rain-swollen Cedar River had been evacuated.
The National Weather Service forecasted the river to crest at 23 feet, which is about 7 feet into the category of major flooding but still below the record of 31.12 feet set in 2008.
The commissioner’s Bulletin 16-01 requested that all licensed insurers allow coverage to remain in effect for any Iowa insured who resides in a county where a disaster has been declared and who has had their ability to timely act or respond to insurance requirements, such as premium payments, impaired by the disaster.
The bulletin said insurers may alternatively choose to implement this request in a broader manner such as delineating impacted areas by zip code, county or other geographic territory to assist impacted insureds in recovering from the recent floods.
Insurers were urged to consider providing a grace period during which their insureds can take actions necessary to keep their policies in force.
The commissioner did not request that insurers waive any premiums or other consideration owed on any policy or contract during this period of time.
Additionally, the commissioner asked that health insurers with a network component consider providing coverage to flood-affected insureds who receive out of network care while the impacted areas are designated a disaster at no greater cost to the insured than if the insured had received care from an in-network provider.
After the 2008 flood, about 1,350 homes near the Cedar River were bought out and destroyed to reduce the damage potential from future floods.
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