Potter issued guidance on renewing insurance for storm-damaged homes

Lt. Gov. Osbert E. Potter, serving as the Virgin Islands commissioner of insurance, issued guidance on July 25, 2018, for homeowners seeking to renew insurance coverage on residential properties damaged by Hurricanes Irma or Maria after receiving claim settlements but before completing repairs.

The advisory said homeowners should contact their insurance agent or insurer to discuss renewal options. It said insurers would review renewal applications for damaged properties and advised policyholders to renew coverage at replacement-cost value to avoid being underinsured.

The notice said insurers or agents were required at renewal to provide a "Notice of Conditions of Underinsurance" and said homeowners should review, sign and return the notice with their renewal application.

Potter's office said builders risk insurance could be an option for some property owners, but that occupants could not live in a home covered under that type of policy and that such coverage does not include contents or loss of use.

The advisory also said insurers would not pay twice for the same damage covered under 2017 hurricane claims. It urged homeowners to document the current condition of damaged homes with photographs, keep receipts for repair materials and other purchases, and obtain an appraisal for insurance purposes after repairs are completed.

Potter also encouraged residential property owners who did not have insurance during the 2017 storms to obtain homeowners insurance during the 2018 hurricane season.

Official source: https://www.vi.gov/lieutenant-governor-potter-advises-public-of-insurance-coverage-on-damaged-properties/