The Hawaii Insurance Division published a memorandum providing information on Tropical Storm and Hurricane Lala.
Insurers are expected to handle claims fairly and promptly. Claims should be evaluated based on the facts, including the location, the timing of the damage, and the actual cause of loss. Insurers should distinguish storm or hurricane classifications from watches and warnings.
Damages should be evaluated on a claim-specific basis and not automatically characterized as hurricane or tropical storm damage. If coverage is denied or limited, the insurer should clearly explain and identify the relevant part of the policy.
Insurers should maintain adequate documentation, including date and time of loss, location of the insured property, reported and determined cause of loss, application policy and endorsements, applicable deductibles, inspection findings and other evidence, and the basis for any denial or limitation of coverage.
The Department provides Attachment A, which lists the storm classification timeline and island-by-island watch and warning history. The memorandum 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.