Bill Passed Mandating Second Notice That Homeowners’ Insurance Doesn’t Cover Floods

In the aftermath of Hurricane Katrina, the Mississippi Senate wants insurers to notify homeowners that their policies do not cover flood damage, even though insurers already do this. One might join IndemniBlog in being “shocked, shocked” that politicians are playing politics over the issue and requiring a redundant notice.
UPDATE: Here is the text of Mississippi Senate Bill 2014. A similar bill that passed the state House would require agents to get a signature from policyholders attesting that they’ve been notified their homeowners’ policies don’t cover floods, which may inevitably lead to legal arguments that coverage was extended, despite the terms of the policy, whenever the agent fails to get a signature. More on the issue from the Sun Herald of Biloxi (keep scrolling).

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