The Indiana Department of Insurance published a bulletin announcing a moratorium on cancellations of insurance policies affected by the recent disaster events within the state.
Indiana Governor issued an executive order declaring a statewide disaster emergency on August 13, 2026, due to severe weather, tornadoes, and flooding, which resulted in severe property damage. In response, the Indiana Department of Insurance is asking insurers to implement extensions and grace periods to affected consumers.
The Department asks insurers to implement a 60-day moratorium on the cancellation of any insurance policy held by a consumer who was directly affected by the disaster events. The Department also asks insurers to suspend any penalty for a late payment during this time.
The moratorium does not waive the policyholder's responsibility to pay the premium. After the 60-day period, the policyholder will have to resume making payments. Policies may be cancelled or non-renewed for other allowable reasons.
The moratorium will last for 60 days as of August 17, 2026, and may be extended by the Department is deemed necessary.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.