Delaware homeowners are among the best protected in the nation against having their homeowner’s insurance non-renewed or rates raised due to filing or even inquiring about a claim.
This is according to a recent study by the Rutgers Center for Risk and Responsibility at Rutgers Law School, which ranks Delaware as the fifth out of ten states that have received a four or five-star rating.
“Consumer protection is my administration’s top priority,” said Delaware Insurance Commissioner, Trinidad Navarro. “While I am happy that we are ranked fifth in the nation in consumer protection for homeowners insurance, I will not be satisfied until Delaware is first.”
In cooperation with United Policyholders, the Rutgers report examines the practice of “use it and lose it” by insurers throughout the United States. Under “use it and lose it,” insurers raise rates or decline to renew homeowners insurance policies when an insured has filed a claim, or even if they simply inquire as to a possible loss.
Insurers raise rates or do not renew policies even if they do not have to pay anything out on a claim.
Some insurers say the protections drive up insurance prices since some policyholders make more minor claims than others.
“Homeowners work hard to be able to purchase and pay for their insurance to safeguard their families and assets. Consumers should not be penalized for using their purchased product,” said Navarro. “This study confirms that Delaware’s laws are among the best protections on the books in the nation, affording homeowners with maximum protection against unfair insurance practices and penalties.”
For more information on homeowners insurance, visit www.insurance.delaware.gov, and click on the link for the Consumer Services & Investigations Division.
