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.

Reported late last week, State Farm Florida is looking to shore up its finances and reduce discounts for customers... at the expense of those very customers. The Daytona Beach News-Journal reports

Trying to shore up its finances, State Farm Florida will eliminate or reduce some insurance discounts it offers to homeowners -- leading to an average premium increase of 28.4 percent.

The move, which comes as State Farm prepares to pull out of Florida's property-insurance market, will have widely varying effects on policyholders because they qualify for different levels of discounts.

Some will face large premium increases, while others will see little effect on their wallets.

But company and state officials said the biggest change will eliminate a discount customers receive when they go years without filing claims for fire, theft and other non-hurricane damages.

State Farm announced plans in January to leave the property-insurance market because it said its Florida subsidiary was losing money and in danger of eventually becoming insolvent. That decision came after regulators rejected a 47 percent rate increase.

With State Farm's exit plan already in place, this means customers of the insurance giant will face higher rates as they are indeed dumped by the company. Shopping around for another company, if they haven't begun to already, looks to be a fine plan for customers in Florida.

Catching up on June happenings, it is important for those individuals affected by Hurricane Katrina to know that the timeline in which they may file for claims involving damage from the epic storm has been reset.

From NOLA.com

The class action allegations against insurers in the consolidated levee breach litigation have been dismissed, restarting the clock for anyone who is dissatisfied with the results of their Katrina claim and allowing them to file a lawsuit against their insurer nearly four years after the storm.

Home and business owners and renters had two years to file lawsuits against insurers over claim disputes after the Aug. 29, 2005, storm. Class action lawsuit filings stop the legal clock by covering the rights of all potential members of a class, but if that petition fails to get certified as a class or individual defendants get cut from the proceedings, plaintiffs' individual legal rights to pursue similar claims are restored.

On Tuesday (June 16), U.S. District Court Judge Stanwood R. Duval Jr. granted a request by insurers to be severed from the Katrina Canal Breaches Consolidated Litigation, saying that disputes against insurers were individual, and not suitable to be handled as part of a class action.

It is important for Louisiana homeowners to work immediately to look for legal action should they not have already and hold insurers responsible in the event their homes were damaged. Late answers to policy claims and frivolous delays or demands should
be answered by demanding the rights promised to them by the country's judicial system and contacting an attorney should working through their agent be stonewalled is the most definitive and proper action.

The recent events in Florida and the exit of various insurance companies from areas surrounding the Gulf Coast have raised a lot of speculation on how to preserve competition within these states while at the same time not forcing the government's hand to bail out in the event of a disaster. About a month ago The Florida Times-Union wrote on this topic and how drastic the decisions may be to keep a level playing field for residents.

Florida's property insurance system is a ticking time bomb, one that could wreak havoc on the state's economy when - that's when, not if - the next hurricanes hit.

This is because the state-run catastrophic fund, which shares property insurance risks with companies that sell policies here, is egregiously underfunded.

In a worst-case scenario, insured homeowners might face long delays in getting money to rebuild their hurricane-damaged houses - and all Floridians could be stuck with very high taxes or "assessments" to raise the needed money.

So, what's the solution?

Ideally, it would be to spread out some of the costs through a federal catastrophic natural disaster fund, similar to the federal flood insurance program.

It's doubtful that either of Florida's senators, or any of its House members, have enough clout with their colleagues to get the job done.

While there is no clear answer in sight and Florida is not alone on this issue as insurers in Louisiana and Texas have shown the same sort of reluctance and could go the way of others soon, debate on reform is essential. Without this topic being out in the public discourse, policy holders can be left shocked when a provider pulls out of a state or region.

KBMT in Southeast Texas similarly outlined issues relating to premiums and insurance agents in discussing the problems facing their viewership

According to the Insurance Information Institute, homeowners insurance premiums are up about three percent nationwide and probably more in some coastal areas where the potential for damage is greater.

Several factors are affecting premiums and coverage, including the $26 billion insurers paid out on catastrophic losses in 2008 and the impact of financial market turmoil on the companies earnings.

Changes in state regulations are also driving some premiums higher.

This outlook is not all that positive for homeowners in the region as a whole but, when combined with the first article, demonstrates how significantly important it is for some solution to be reached in the coming years to prevent residents of the Gulf Coast, in various states, from being damaged harshly by these insurance issues. By staying on top of the issue and making sure that the elected officials of the area and on the federal level are doing everything they can to keep insurance companies in the region and more money in the pockets of policy holders.

This weekend is as good a time as any to prepare your family, home, business and/or property for hurricane season. Our blog has featured various tips on how to be ready in the event of a hurricane and what steps you can take to insure you are on solid footing in the aftermath of a storm.

Simply go to the Storm and Hurricane tips section of this blog to find out more information.

In a report by Fox News, most coastal residents are not prepared for hurricane season.

Many Americans who live in Gulf and Atlantic Coast states are not prepared for an active 2009 hurricane season, despite being slammed last year, a new Mason-Dixon poll found.

More than half those surveyed, 66 percent, said they don't have a hurricane survival kit and 62 percent said they don't feel vulnerable to a hurricane or related tornado or flooding.

A majority of them, 83 percent, said they haven't done anything in the past year to make their houses more hurricane-resistant, according to the poll.

While the last fact, that more preparation has not been undertaken since last year, may be a bit misleading as many residents of the Gulf Coast took extraordinary measures in the wake of Katrina to be ready, these numbers are still troubling. Storm and Hurricane preparation and informational tips are available within this blog and residents of Louisiana, Florida, Alabama, Texas and other states are urged to become vigilant in keeping up in their preparations. Check your insurance information to see if it covers any new developments or additions to your home or property and, again, follow some of these tips. The time is most definitely well spent as the storm season approaches.

Today, according to the Atlantic Oceanographic and Meteorological Laboratory, marks the beginning of hurricane season.

The Atlantic hurricane season is officially from 1 June to 30 November. There is nothing magical in these dates, and hurricanes have occurred outside of these six months, but these dates were selected to encompass over 97% of tropical activity. June 1st has been the traditional start of the Atlantic hurricane season for decades. However, the end date has been slowly shifted outward, from October 31st to November 15th until its current date of November 30th.

Now, before it's too late, make sure your insurance premiums are up to date, your coverage is what you wanted and your home plan on emergency preparation is ready. For more information on how to be prepared for storms and hurricanes, check out our blog posts that go over a variety of ways to be prepared in the event of a disaster or tropical storm.

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.

In the midst of Hurricane Rita judgements and appeals, the Southeast Texas record recently profiled a woman who, albeit bravely, chose to represent herself in her appeal against her insurance company and paid the price. Mary Harmon, who felt her insurers, National Lloyds and the Kenneth Denby Insurance Agency, acted in bad faith when they denied her claim, went through the primary steps by herself but then chose to go it alone.

A year after filing an appeal over her Hurricane Rita insurance lawsuit, Mary Harmon had never filed a brief, leading justices on Texas' Ninth Court of Appeals to dismiss her case.

In August 2006, Harmon filed a suit against National Lloyds Insurance and the Kenneth Denby Insurance Agency in Jefferson County District Court, alleging the two insurers stiffed her on her Hurricane Rita policy claim.

According to her suit, Harmon purchased a National Lloyds home insurance policy through Denby on May 1, 2005. She alleges the defendants never informed her that her policy excluded windstorm damage.

While Harmon was right to hire an attorney, policyholders need to remain vigilant and allow the legal process to develop instead of moving on if there is a snag. Regardless, this case demonstrates a frequent blame game that occurs in regards to storm damage and the wind versus flood debate, as does the lack of consistent explanation from agents on coverage. Getting acquainted with your policy while at the same time making sure to immediately contact a legal professional in the event a claim is denied or undervalued is a must for residents of the Gulf Coast area.

If you need legal counsel, contact the Berniard Law Firm. Specializing in insurance appeals and disputes, our attorneys will work hard to make sure you get the money you deserve.

Per The New York Times, "After the 9/11 terror attacks, thousands of people faced a weighty and uncomfortable decision. Congress had created a special fund to compensate survivors and victims' families, but said that those who received compensation from it could not sue airlines or airport security firms, among other entities."

While many families who lost a loved on in the attacks "sought compensation from the fund" a "new court report suggests that the small minority who went their own way and sued made out better financially: 93 of the 96 claims have been settled, for an average of $5 million, or more than twice the average payment from the special fund."

This correlation can be found now in settlement struggles between people still fighting with their insurance companies with Ike and Gustav hurricane claims who did it without legal assistance. Insurance companies very often "lowball" or under-appreciate the value of homes and property damaged in incidences. With legal assistance, experts and courtroom litigants, individuals run a much better chance of receiving higher compensation. While, in this case, it was the government pressuring settlement, insurance companies have a proven trackrecord of manipulating and exerting pressure on their clients to accept their offers rather than pursue legal assistance. However, in the event your property or home is damaged under insured events, seek a legal expert who can get you the financial settlement you deserve.

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.

In an extremely important ruling made by the Louisiana Supreme Court, citizens of Louisiana have an extended time period to press litigation against insurers for Katrina-related delays or judgements relating to storm damage and insurance company actions:

Louisiana Citizens Property Insurance Corp. and other insurers may face a new round of lawsuits related to Hurricane Katrina even though the deadline for filing expired a year and a half ago.

The Louisiana Supreme Court declined late last week to hear an appeal in the case of Brenda Pitts v. Louisiana Citizens, thereby allowing a lower court decision favorable to policyholders to stand.

In January, the Fourth Circuit Court of Appeal ruled unanimously that Pitts could file suit against Citizens months after the deadline for initiating litigation had passed because a class action lawsuit involving similar grievances had stopped the clock on the issue.

It is important that home or property owners who fell behind this deadline and were not able to get justice earlier on contact a legal expert immediately to discuss their rights in the wake of this ruling. The Berniard Law Firm was recently successful against Louisiana Citizens in a class action relating to delays citizens encountered in the wake of the hurricanes.

Per The Times-Picayune, FEMA has delayed the deadline to 2012 for collecting insurance money designated for the elevation and protection of homes in Louisiana:

Because of the slow flow of other federal money, such as Road Home grants, FEMA had already pushed back the deadline for home-raising work under the National Flood Insurance Program's Increased Cost of Compliance provision.

Typically, to collect up to $30,000 in so-called ICC money to cover the costs of protecting their property from future storms, rebuilding homeowners have two years from the date that their property is declared "substantially damaged" to complete the relevant work. FEMA had already extended that to four years.

For most people affected by Hurricane Katrina, that gave them until September 2009. But earlier this month, state officials argued that homeowners needed more time because of various impediments to rebuilding, such as a shortage of contractors, new damage from last year's Hurricanes Gustav and Ike and the late arrival of state-run storm-proofing incentive programs, namely the Road Home elevation grants from the FEMA-financed Hazard Mitigation Grant Program.

This is a good sign as it indicates the federal government is aware that there are extensive delays people in the Gulf Coast area are dealing with, be it federal funding such as this or insurance companies delaying payouts. More time gives a break for residents who are feeling the economic crunch or are simply unable to meet the deadlines as they are set. Either way everyone wins in this scenario as it gives the government time to make sure the process goes correctly and is not rush and allows residents the opportunity to breathe easier about the new federal requirements.

As the 2009 hurricane season looms, insurance companies continue to delay and prolong their payouts from 2008's storms and stall trials. Cases based upon Hurricane Rita STILL have not begun to work their way through the Jefferson County, Texas, courts.

Another Hurricane Rita insurance trial gets nixed By David Yates

In four years, three hurricanes have whipped through the Golden Triangle area, leading to thousands of lawsuits by property owners who claim they were short changed by their insurance companies.

However, not one of those filings has made it to trial yet.

A case over a homeowner's insurance claim for damages from 2005's Hurricane Rita case was set to go to trial on Feb. 3, but was nixed before summoned jurors could step foot in court.

The trial of David Scott vs. Braud, Vaughn & Williamson Insurance Agency et al has been reset for April 17.

Scott sued the insurance provider, along with one of its agents, in November 2006, for allegedly failing to secure a policy on his Nederland rental property.

More of the article may be read here but it is very apparent the insurance companies have zero incentive to make it easy on their policy holders to make a claim and instead work the system to limit the amount they pay out. Because of this, it is all the more important to be on top of your claims and maintain your end of the policy deal so that, in the event of a storm, your claim may be made immediately and, should the insurance company pull any games, you are ready and fully equipped to proceed with litigation.

Continue reading "Hurricane Rita cases yet to reach trial" »

In the wake of Hurricane Ike, residents of the Gulf Coast are beginning to piece together their lives and rebuild their property as they attempt to return to a sense of normalcy. While making claims for damages rendered by the storm, various difficulties will arise that Texas, Louisiana, and Mississippi residents must remain vigilant and observant for to prevent abuse and misconduct on the part of insurers.

When disasters like Ike occur, problems with insurance claims consistently pop up that relate to the following issues:

Improper adjusters
Forced/intentionally confusing settlement offers
Refused claims based upon no merit
Harassment
Grievously low estimates
Incorrect rebuilding figures
Bad faith efforts on the part of insurers
Frivolous litigation threats

Such actions can truly hinder and harm insured victims of storms that are merely looking for a way to return to what was once home. While federal protection agencies serve as a watchdog for these forms of fraud and misconduct, they often are incapable of handling every single instance. When this happens, it is essential for claimants to have proper representation to protect themselves from being bullied or mishandled by the insurance agencies.

If Allstate, State Farm or any of the other insurance companies in the Gulf Coast are giving you a hard time in your insurance claim, contact an attorney immediately.

Continue reading "Problems With Insurance Companies" »