Bill Aims To Eliminate Insurance Confusion

By Phil Gregory, WBGO News
Trenton. January 29, 2013

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Mantoloking homes damaged by Hurricane Sandy (photo by Phil Gregory)

New Jersey lawmakers are considering legislation to help homeowners better understand their insurance policies.

Assemblyman Reuben Ramos says many homeowners were shocked to learn their insurance policies did not cover the damage caused by Hurricane Sandy.

“They saw the water coming into their homes, and I think the first thing they said is I’ll call my insurance company up and we’ll be able to take care of this and this will be covered. We’ll just have to go through the process, but lo and behold they found a lot of things were not covered or the amount that they thought it would be covered up to was not in fact true.”

Ramos is co-sponsoring a bill that would require a one-page summary of a policy’s coverage and exclusions.

“We’re paying our premiums. We’re paying all our costs. We don’t read the fine print as to what is exactly covered. Basically a glossary, what is wind damage, what is surge damage, what is flood damage. So we really need to understand what is in our insurance policies. We’re trying to make this as consumer-friendly as possible.”

The Assembly passed the measure without opposition. Ramos is hopeful the Senate will act on it within the next few months.


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