Life Insurance

INDIANAPOLIS -- Insurance companies would need to inform policy holders of any changes to their coverage in a bill which passed the House on Friday.

House Bill 1452 was designed in part to address problems residents in Highland, Gary and Griffith had with their homeowners insurance after heavy rain in September 2006 led to widespread sewer backups and flooded basements in the town.

Rep. Dan Stevenson, D-Highland, said many people didn't realize until they tried to collect from insurance companies that they no longer had sewer back-up coverage.

"One guy had homeowners insurance for 40 years, and didn't realize until after the flooding that for 10 years of that he had no sewer back-up coverage," Stevenson said. "The change was part of the fine print, and he didn't realize it."

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