Disaster Officials Squelch Insurance Rumor
Release Date: May 21, 2003
Release Number: 1464-28
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Nashville, TN -- Tennessee's storm disaster victims were told Wednesday that applying for federal and state assistance would not affect their private homeowner insurance policies.
"We need to stop that rumor in its tracks," said Michael Bolch of the Federal Emergency Management Agency (FEMA), the official in charge of federal recovery operations. "Homeowners insurance and federal assistance are not connected."
Bolch issued the statement in response to reports that some disaster victims were hesitant to register for assistance because they feared losing their private insurance protection. "Insurance companies would have no reason to take such action," he said. "Disaster assistance is available only to uninsured families or those with insurance who have losses not covered by their policies."
John D. White, director of the Tennessee Emergency Management Agency (TEMA), said the reports may have followed news media stories quoting insurance industry experts as saying some insurance companies were canceling policies after claims for storm damage were filed.
"This action, if true, has no bearing on state and federal disaster assistance," White emphasized. "Any insurance policy holder who has problems can file a complaint with the Tennessee Department of Commerce and Insurance." The insurance hotline number is 1-800 342-4029.
Disaster assistance is available in the declared counties only by registering with FEMA by calling 1-800-621-FEMA (3362). The number for persons with speech or hearing impairment is 1-800-462-7585.
Last Modified: Thursday, 22-May-2003 08:49:17