Insurance Dispute Lawyer Blog

Hurricane insurance claims continue to be filed in the Gulf Coast, this time in Texas. The Southeast Texas Record reports a wide assortment of filings over the last week of October. Examples include:

Joseph and Julia Crow of Beaumont allege Texas Windstorm Insurance Association denied their claim for roof, water, wind, foundation, structural and contents damages caused to their home after Hurricane Ike struck on Sept. 13, 2008. TWIA denied the claim after its Vice President of Claims Reggie Warren assigned adjusters to investigate.

June Jennings of 1908 North 21st St. in Nederland alleges Texas Windstorm Insurance Association improperly paid her claim for dwelling and contents damages caused to her home after Hurricane Ike struck on Sept. 13, 2008.

These two cases highlight a common thread in insurance disputes: claim denials and low-ball financial compensation offers. Further, many insurance companies hope that homeowners do not know how long they have to file and try to convince them that a low settlement is the only solution. In many cases this is simply not the case and accepting such an offer is disastrous.

The Berniard Law Firm is very familiar with attacking both of these strategies when its clients are taken advantage of by the insurance companies and employs a myriad of experts that will help you receive the justice you deserve.

A quick news piece emerging out of Houston demonstrates that though it has been a quiet hurricane season, the damage caused by previous years in which the Gulf Coast was not so lucky have still not been overcome. In Houston, individuals still living in FEMA trailers in the wake of Hurricane Ike have been notified that they will need to vacate and move on to more permanent housing.

Per Houston's Daily News

Before Hurricane Ike, Sidney Lampman rented the first floor of her sister’s two-story house on West Hunter Drive in Old Bayou Vista. The hurricane flooded the house and, even though Lampman rented the property, rather than owned it, the Federal Emergency Management Agency gave her a mobile home while she looked for a new place to live.

This month, the agency sent Lampman a letter telling her she must move out of the mobile home because there are plenty of apartments and rental houses in the area.

The agency referred her to the federal Disaster Housing Assistance Program, which subsidizes rent for hurricane victims through March.

It is disappointing to see people are still having to rely on this governmental housing and shows the true destruction caused by these disasters. We can only hope this quiet hurricane season continues and the Gulf Coast is given a reprieve from disastrous weather.

The Associate Press reported earlier this month on recovery and rebuilding efforts going on in the city of Galveston as residents try to move past Hurricane Ike and into the new future of the town. Facing its first hurricane season since Ike, the residents emotions fluctuate as they try to bring their city back from the brink of complete destruction the hurricane season brought upon it last year.

Another hurricane season is the last thing Galveston wants to think about after last year's devastation from Hurricane Ike.

"Hurricane season got here a lot quicker than I thought it would. I'm still busy working on my own house, trying to get back in there," said Steve LeBlanc, manager of the island city 50 miles southeast of Houston. "But we are busy getting prepared for another season."

As the 2009 hurricane season began this week, many of Galveston's residents were still mired in repairs nearly nine months after the costliest disaster in Texas history came ashore with 110-mph winds and 12-foot storm surge on Sept. 13.

During Galveston's annual hurricane preparedness meeting on Wednesday, Mayor Lyda Ann Thomas and other officials warned the approximately 12,000 island residents who ignored an evacuation order for Ike: This time, leave when we ask you to.

It is obviously important for residents of Galveston, Texas and the Gulf Coast region as a whole for the city to be rebuilt as a sign that these disasters can and will be overcome. The lesson, it seems, that needs to be learned in the wake of such tragedy is that no storm's danger should be overlooked when people decide to ride it out or not. By being prepared and ready to evacuate in the face of approaching storms, residents can guarantee the safety of themselves and their loved ones rather than running the risk of the storm building stronger and changing direction, wreaking havoc like they did in the past three years in the Gulf Coast.

While stories have been popping up progressively in the wake of Hurricanes Katrina, Gustav and Ike, one interesting development has been the efforts by lawmakers and citizens for preparedness should an unpredictable catastrophe befall their hometown. States along the Eastern Seaboard have been taking action instituting insurance measures and local disaster drills should an unexpected and devastating hurricane knock on their doorstep.

New Jersey is one of those states, taking it as far as to create a fund that would help make sure homeowners would be protected in the event of a cataclysmic storm:

Today, the Legislature will begin hearings on how to best protect New Jersey homeowners from the devastation of major hurricanes or other natural disasters. This is an important and timely step; the Atlantic hurricane season begins in less than a month and New Jersey is both exposed and vulnerable to those storms.

The Senate Commerce Committee will hear testimony on the "New Jersey Consumer Catastrophe Preparedness and Protection Act" (S2089), sponsored by Senate Majority Leader Steve Sweeney (D-Gloucester). It would use private insurer dollars to create a fund that would stand behind the traditional insurance market to cover the most extreme losses from truly massive hurricanes -- not the routine storms that sweep across beachfront properties, but those whose devastation would stretch far beyond our coastal communities and well into many of our urban centers.
Because the fund would be a pubic-private partnership, private insurer dollars that are deposited into the fund, as well as the fund's investment income, would be exempt from state and federal taxes. Mandatory annual deposits combined with tax-free investment income would help the fund to grow year after year.

A portion of the investment income, but not the principal deposits, would by law be annually appropriated for preparation and planning so that damages from storms could be minimized. A portion would be used to enhance first-responder training and equipment so that lives could be better protected when the unthinkable does happen. A portion would also be dedicated to improve consumer and homeowner education so that residents can be informed and prepared in the event of a massive natural event.

It's good to see that the lessons of the past will not be forgotten so easily, even in states that did not face such hardships directly.

In a move set to memorialize and preserve the memory of the carnage and harm recent hurricanes have caused, the NOAA is retiring several notable storm names from active use in the upcoming hurricane season.

The names Gustav, Ike and Paloma will never be associated with future hurricanes or tropical storms on account of their deadly romp through the Caribbean last year, the United States National Oceanic and Atmospheric Administration (NOAA) has announced.

The storms claimed more than 200 lives and left a trail of destruction calculated in the billions across the region from August to November 2008.

Under the normal six-year rotation, the names would have been up to be used again in 2014. However, they will be replaced by Gonzalo, Isaias and Paulette.
An NOAA spokesman said the names were retired for reasons of sensitivity.

This is a good move by the weather service and a chance to move forward in the wake of these storms' deadly destruction.

Submitted by a reader (and we love our readers!), a new website is available to see just what popular attractions and sites on the island of Galveston are open! Check out Galveston Now Open! to see just what sites you can visit that have recovered from Hurricane Ike.

Much like the determination and rigor that New Orleans demonstrated in the wake of Hurricane Katrina, the site features the emerging "Now Open" signs across the Texas island and the optimism this demonstrates for the Gulf Coast region.

A snippet from the site describing the rebuilding efforts:

But soon the landscape changed. Bright, colorful signs were popping up all over the island, shouting "Now Open." Galveston businesses were telling residents and recovery workers that they were open to serve them.

But who was telling the rest of the world that Galveston is Now Open? Well, I thought, that's what the Internet is for! Because of the work I do to create web sites and market them, I wanted to put the Internet to work for Galveston.

I started taking the photos on January 3, when my son and I attend the grand re-opening of the Grand Opera House. The Press Box next door had their hand-drawn "open" sign on a white board propped up against the front wall. I had been toying with the idea for several weeks, because the signs, although temporary, were such a welcome sight against the piles of debris and destruction.

So since then I've been driving around with my camera and snapping pictures of the ever-growing number of "Now Open" signs on the Island. I really like the photos that show the juxtaposition of the storm damage to the resilient statement that a "Now Open" sign makes.

If for nothing else, the site is worth a look just to see the rebuilding effort and determination being demonstrated in the wake of the sheer destruction Hurricane Ike caused. The best of luck to the citizens of Galveston in their rebuilding effort and thanks to Veronica for the heads up.

Again, the link to the site is available here (http://sites.google.com/site/gnowopen/Home).

On Sunday, the Nashua Telegraph featured in their Living section a nice write-up about the recovery effort going on for the residents of Galveston. While there is still a lot of work to be done, it appears that the heart and desire is there for locals to completely rebuild the area after the devastation left by Hurricane Ike:

Despite these and a handful of other shuttered buildings, Galveston has reopened for business just in time for the spring tourism season.

The Flagship is one of only four of the island's 40 hotels that remain closed since the Category 2 storm tore through town.

Across town, the island's most popular theme park, Moody Gardens, reopened its storm-damaged rain forest and aquarium exhibits in March. Also last month, crews at the nearby Schlitterbahn Galveston Island Waterpark reopened its 70,000-square-foot indoor recreation area after a six-month cleanup. Among the features added during the overhaul were free wireless Internet, a large palapa structure and a wireless wristband debit system that allows visitors to buy food without carrying cash or a credit card.

A week after the reopening, park spokesman Jeffrey Siebert said attendance had kept pace with previous years.

While the news can be marred in the dark and depressing stories that develop from hurricanes and tropical storms, as well as the hardships that come in the wake of such tragedies, it is also important to see write-ups about things getting better. Galveston appears to be on the road to recovery and that's a wonderful thing to read and see. The article does mention that "many residents are still struggling to rebuild homes and wrestling with insurance claims and contractors," which is a shame but a reality after any devastation like that of Hurricane Ike. Receiving legal assistance when these delays occur should be a number one priority for anyone who has the will and desire to rebuild and return to a normal life but is finding the technicalities, bureaucracy or bullying of insurance claims to be getting in their way.

In the wake of insurance companies backing out of agreements intended to help policy holders rebuild their homes and move on with their lives, SE Texas residents are beginning to feel the need to turn to the legal system to receive the money they are owed. KBMT news did a feature on an impending 'explosion' of lawsuits after insurance companies like Allstate have gone back on deals that it had made with policy holders.

Kim and Terry Cooper have lived in their Orange County home for 10 years but were dumbfounded when their insurance company walked away from the Cooper's damage claims.

"They kept putting us off it seemed like Allstate was trying to keep their money as long as they wanted" said Kim Cooper.

The Coopers have already repaired the hole in their roof they say was caused by Hurricane Ike when a tree crashed into their roof. They are also dealing with a cracked foundation - all damages that they say ultimately made the home unlivable.

It is important that specific steps are taken when making repairs while waiting for insurance company money to come in. This includes, but is not limited to, making only necessary repairs while closely documenting the cost and work done to guarantee your claim is for the appropriate amount and is not lower because of the work you have done.

The article quantifies the issue

Fourteen lawsuits were filed in Jefferson County in the past week alone - all residents who say they are not happy with the relief offered by their insurance company and Brashers says that's only the beginning. The week before there were six.

If your insurance company is giving you the run-around, stop waiting for them to do the right thing and look into your legal options with an attorney. The Berniard Law Firm is equipped with experts and lawyers that are fully capable of reviewing and handling your issue. Contact the firm today if you feel that your insurance company is not handling your matter with the seriousness or care you deserve.

Texas' state-run wind damage insurance program has fallen into financial crisis as a result of settlements and payouts in the face of recent hurricanes. Insurance reform has been pushed to the top of Governor Perry's priority list in the new legislative session but things are not looking good for the program:

An arduous task is ahead for Texas legislators as they continue to hammer out measures meant to shore up the state's property insurance market in time for this year's hurricane season, which begins June 1.

While it continues to pay claims from Hurricane Ike last September, the state-run Texas Windstorm Insurance Association is in a "severe financial crisis," said Jerry Johns, president of the Southwestern Insurance Information Service and a spokesman for TWIA, which he said has depleted the Catastrophe Reserve Trust Fund. In addition, reinsurance expires May 31, he said.

"If TWIA was in the private market, it would be in receivership," he added.

TWIA used up all of the cash it had on hand after Hurricane Dolly in July 2008 and dipped into the cat fund. The association assessed its member insurers $100 million before the larger Ike made landfall in the state in September. In its aftermath, TWIA assessed insurers another $430 million in order to be able to tap into reinsurance to pay claims (BestWire, Sept. 15, 2008). TWIA expects $2.7 billion in losses from Ike.

This is not good news as Florida's state-run insurance programs will be burdened by State Farm's departure and shows a severe problem that may become more and more prevalent and worrisome as years go on. It is important for property and home owners to maintain proper insurance as time wears on because full protection with legal assistance is one of the only solid manners in which policy holders can prevent troubles in the future should damage befall them.

A recent article by Houston's Chronicle highlights the delays being faced by Texas property owners in the wake of Hurricane Ike. Not surprisingly, almost all involve insurance company delays:

LIST OF COMPLAINTS

Top five reasons Texas homeowners have lodged Ike-related complaints against the Texas Windstorm Insurance Association, as of March 12, and the number of complaints.

Delays (claims handling) 607

Unsatisfactory settlement 373 or offer

Denial of claim 281

TWIA appeal 262

Customer service 107

Source: Texas Department of Insurance

The problem many people are facing regarding this issue is that bureaucracy and insurance companies' unpublicized policies regarding automatic claim refusals or cap limits impede good faith claim efforts. Without proper legal support from a practiced attorney, many of these Texans will face difficulties seeing more, or any, money in the near future.

The article continues and outlines the problem that far too many homeowners faced in the wake of hurricanes in the Gulf Coast like Katrina. The insurance companies often rely upon analyses that focus entirely upon flood damage instead of wind damage, etcetera. This works to undermine claims made by policy holders that are made in good faith.

Hurricane Ike razed Joni Harding’s home and two rental properties six months ago today.

Since then she’s been able to pool enough money from her three flood insurance policies and savings to rebuild her primary residence, but she is still waiting for a settlement offer from the Texas Windstorm Insurance Association on two of her properties, including her home.

Harding is among thousands of so-called slabbers, mostly from Bolivar Peninsula, still waiting on the state-sponsored company to make an offer. And many of those who have checks say they’re not enough.

As far as legalities, it is important, again, for policyholders to hire an attorney to go through the complexities of their policy and find out their best course of action to get the money they deserve. Attorneys like those at the Berniard Law Firm utilize construction experts to make sure claims are on mark and that present day values are used to make sure that the claim they put forth is the best.

The Southeast Texas Record reports

A total of 13 suits against insurance companies regarding Hurricane Ike damage claims were filed in Jefferson County District Court during the week of March 23 - March 27, 2009.

Insurance companies are coming to realize people are beginning to become aware of delay and undercutting tactics and resorting to litigation to get the money they deserve. The longer people wait to hire an attorney when they start dealing with the absurd undertakings of insurance companies the longer their payout will take.

The various details of their claims (not shocking tidbit: those with specific details all deal with roof damage, a clear flood vs. wind issue) are available in the article linked.

During an interview with WBRZ, Louisiana's insurance chief reminded Gulf Coast residents about tax rebates available to citizens in the wake of Gustav and Ike.

Homeowners who suffered property damage from Hurricanes Gustav and Ike are eligible for two tax rebates and a tax deduction. Louisiana Insurance Commissioner Jim Donelon said property owners will receive a rebate if they were charged for a Louisiana Citizens assessment on their 2008 policies. Additionally, residents can claim damages in excess of $100 as a 2008 federal hurricane tax deduction.

The video of the interview can be found here.

Per the Insurance Journal:

Gulfport, Mississippi Mayor Brent Warr, who is under indictment on several counts of fraud, will not run for re-election.

Warr made the announcement this week in a videotaped message released by his office.

Warr and his wife, Laura, are accused of defrauding the government and an insurance company over losses they suffered during Hurricane Katrina. The government alleges the couple did not live in their beachfront home before Katrina. The Warrs say they did.

The Warrs have asked a judge to delay their April 6 trial until the summer.

The 45-year-old mayor says in his announcement that he doesn't think he can fight the fraud charges and run for office at the same time.

An interesting development that goes to show playing it straight on your insurance claims is the best route, no matter what.

As if waiting for insurance checks wasn't enough, residents in Galveston are now being held up by their mortgage lenders. In an article by the Galveston County Daily News, the plight of some homeowners is detailed as mortgage companies try to protect themselves and their investment and residents remain financially trapped.

But almost five months after Hurricane Ike filled the house with nearly 5 feet of salty floodwater, the Lopezes were still waiting for the mortgage company to send them the first installment of funds to go toward repair.

So many storm victims have had similar problems with their lenders that the Texas Legislature’s subcommittee on hurricane recovery has recommended the state start making mortgage banks pay interest to homeowners on any insurance funds held for an unreasonable amount of time.

This just goes to show there are so many bureaucratic steps to insurance and home protection that remaining on top of issues and ahead of the curve may help you in the longterm should a tragedy befall you and/or your property.

Texas Governor Rick Perry has requested that FEMA waive or extend the deadline for FEMA aid to those whose lives have been disrupted by Hurricane Ike. KFDM reports:

Gov. Rick Perry has requested the Federal Emergency Management Agency (FEMA) waive, or extend for 180 days, the deadline to file proof of loss requirements for flood insurance policyholders whose homes were damaged by Hurricane Ike.

Due to the severity and magnitude of the disaster, FEMA granted an extension of the 60-day proof of loss deadline for flood insurance policyholders. Currently, policyholders are required to file proof of loss by March 12, 2009. An extension would allow Texans the same amount of time to file their claims as was allowed following Hurricane Rita.

"With so many Texas homes suffering flood damage related to Hurricane Ike and so many families who have not yet been able to rebuild, a deadline of March 12 is unrealistic," Gov. Perry said. "I urge FEMA to waive or extend the deadline so that Texans with flood insurance have adequate time to file their claims."

This extension would allow for more preparation and recovery for those harmed by the storm and extends the government's assistance for some time. Insurance companies also have deadlines for their response to homeowner's claims. It is essential that you make sure your insurance company reaches their deadlines on your Hurricane Ike or other property damage claims.

Continue reading "Governor Perry Urges FEMA Extend Aid Deadline" »

A video making its rounds from CBS chronicles the rebuilding effort going on in Galveston in the wake of Hurricane Ike and is worth a look:

While 60 to 80 percent of damage claims have been settled as of December 10, as reported by MSNBC on January 26, thousands of Hurricane Ike victims still have not had their issues resolved. With more and more Texas residents waiting for a response from their insurer, litigation is beginning to be the only option as insurance companies drag their feet to make payouts.

As Texas Insurance Code has time requirements in which residents are guaranteed prompt action from the insurance company, specific legal ramifications exist to compensate the insured when the policy provider fails to assist in a timely manner. The Texas Department of Insurance is looking into mediation programs that mirror those in Florida, Mississippi and Louisiana as a manner of third party resolution. However nothing is certain at this time.

What is certain, however, is that Hurricane Ike victims need assistance and need it now. Insurance companies often stall or delay claim proceedings in order to make policy holders feel "grateful" when the payment finally does arrive. This payment, though, oftentimes is inadequate and not the compensation they deserve. By having an attorney look into their claim and the process it has taken up to this moment, those individuals that were affected by Hurricane Ike can be ahead of the curve if or when litigation is necessary.

Continue reading "Thousands of Hurricane Ike Victims Still Without Resolved Claims" »

Good news for some of those people who were hit hard by Ike:

Texas Ike victims may be eligible for additional coverage

NAMIC DAILYLEAD | 01/26/2009
Texas flood-insurance policyholders could be eligible for an additional $30,000 in coverage for Hurricane Ike damage claims. The Increased Cost of Compliance funding would be used to help pay for increased costs of complying with a building code designed to prevent and mitigate storm damage in threatened areas. Part of most National Flood Insurance Program policies, the additional aid contains other stipulations on location, degree and frequency of damage, and other factors.

More information on stipulations and such can be found here.