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For military personnel and their families, handling personal matters such as insurance coverage and other financial obligations can be made more difficult because of sudden deployment. Before purchasing any insurance policy, ask the agent specific questions about how the company handles issues related to the military deployment of their policyholders. Each company’s practices can vary. Compare prices and the level of service across a few different insurance providers. By shopping around, you may be able to find an insurer who specializes in needs of service members.
Before you leave on a military deployment, check your policy renewal date and payment terms with your agent to ensure your coverage will remain in effect during deployment. If necessary, you may be able to renew a policy early or have your premiums paid by automated bank draft. Some insurance companies might also allow you to suspend certain coverage while you are deployed.
AUTO
If you will be deployed for an extended period of time and no one will be driving your vehicle, you may be able to suspend some of your auto insurance coverage to save on premium payments. Contact your insurer or insurance producer (also known as an agent or broker) to find out more.
If you are thinking about suspending coverage, you may want to:
- Ask whether the following types of coverage can be suspended while you are deployed: liability, collision, uninsured/underinsured motorist, medical payments and personal injury protection (PIP);
- Know that if you suspend coverage, you may not be able to recover money for damage to your vehicle due to weather (i.e. hail or tornado damage), Acts of God (i.e. earthquake or flood) or acts by another individual, unless you keep the coverage known either as "comprehensive" or "other than collision" in force (i.e. vandalism or hit-and-run); and
- Check with your lender first if you have financed your vehicle, since your lender may require you to maintain collision and comprehensive coverage as a condition of your loan. Do not suspend these coverages without your lender's prior written agreement.
Automobile insurers are prohibited from nonrenewing or canceling a policy, or increasing the premiums for military personnel returning from active duty overseas solely because they fail to meet the insurer's continuous coverage requirement unless the failure to maintain continuous coverage existed prior to the overseas active duty assignment.
HOMEOWNERS/RENTERS
It is a good idea to review your homeowners/renters policy with your insurer or insurance producer before you leave for military duty. Doing so could help you avoid a dispute in the future. Also, make sure your policy limits are sufficient to cover your home and your personal property at today’s costs. Consider increasing your coverage if you have made
additions or improvements to your property. If you have a mortgage, it is important that you maintain appropriate coverage on your home. Failure to do so may give the mortgage company the ability to obtain a forced placed policy on your home at your expense. Find out if your policy lapses the lender may choose insurance for you at your expense.
While homeowners and renters insurance policies typically cover personal property that you take with you while traveling, most policies exclude damages caused directly or indirectly by acts of war. Talk to your insurer or insurance producer about whether personal items that you take with you during your deployment will be covered if they are lost, stolen or damaged.
Homeowners/renters insurers are prohibited from nonrenewing or canceling a policy, or increasing the premium for military personnel returning from active duty overseas solely because they fail to meet the insurer's continuous coverage requirement unless the failure to maintain continuous coverage existed prior to the overseas active duty assignment or if the military personnel can demonstrate that he or she has taken reasonable steps to maintain and protect the property during the time he or she is assigned to active duty overseas. You should contact your insurer or insurance producer to find out more.
LIFE INSURANCE
For military personnel and their families, handling personal matters such as insurance coverage and other financial obligations can be made more difficult because of sudden deployment. The Maryland Insurance Administration has created this guide to
Life Insurance for Military Personnel as a means to assist you with these efforts.
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