In light of the recent occurrences of severe and destructive weather, the Insurance Commissioner of Arkansas, Jay Bradford, has announced a moratorium for policyholders residing in the most affected areas of the disaster. The Arkansas Insurance Department issued a bulletin to the states insurers informing them of the 60-day moratorium. The initiative will target those who have not paid their latest round of premiums.
The Department is urging residents to contact their insurance providers to see if they qualify for the moratorium.
Bradford hopes that the move will help ease the financial and psychological burden of those impacted by the storms. Many have suffered damages to their property. In the most severe cases, homes have been completely obliterated, the violent winds leaving nothing behind but the foundations. Insurance companies in the state are still assessing the overall cost of the disaster.
Arkansas joins the victims of a massive storm system that wrought calamity in much of the Southeast region of the U.S. More than 200 tornadoes formed in the region along with hail storms and heavy rains. Consistent with such catastrophes, the damage is widespread, making it difficult to accurately assess the extent of the destruction.
In order for Arkansas residents to qualify for the moratorium, they must first speak with their insurance providers and request an extension of their policy. They will also have to show that they have suffered damages either to property of body or the loss of life as a result of the storms.
Commissioner Bradford has been in contact with insurers, asking them to cooperate with victims of the storm by reviewing for extensions or payment plans.