West Virginia Personal Injury Lawyer - Insurance Disputes

Court to Hear Katrina Insurance Appeal

Mike Simon — Tue, 10 Jul 2007 08:32:13 GMT

The 5th U.S. Circuit Court of Appeals will hear arguments on whether Nationwide Mutual Insurance Co. should be forced to cover storm surge damage to the home of Paul and Julie Leonard resulting from Hurricane Katrina. Oral arguments will be heard on August 6th.

U.S. District Judge L.T. Senter Jr. ruled in 2006 that the Leonards could not collect damages from a Katrina storm surge because wind-driven water damage is not included in Nationwide's coverage. Nationwide has appealed the ruling because Senter also ruled that the Leonards could be compensated for damage that they can prove was caused by high winds.

If the ruling is not overturned, a precedent could be set, through which hundreds of other court challenges to the insurance industry for denying billions of dollars in claims after the hurricane could prevail.

Originally posted at InjuryBoard by Mike Simon

Allstate Hit with $2.8 Million Verdict

Mike Simon — Fri, 11 May 2007 15:49:10 GMT

On April 16, a federal jury in New Orleans awarded a verdict of $2.8 million in an insurance dispute to a man who lost his home in Hurricane Katrina. The jury found that Allstate did not pay enough money to cover wind damage caused to the home by the hurricane. In what has become a standard position of insurers confronted with Katrina claims, Allstate claimed that most of the damage was caused by storm surge, which was not covered under the policy.

The jury concluded that Allstate owed the man an additional $561,600 for payment of the wind damage, and an additional $2.25 million for failing to pay the claim in a timely manner following the storm that occurred almost two years ago.

In the litigation Allstate accused its insured of misrepresenting his claim, alleging that he was requesting Allstate to pay for a boathouse that was not covered under the policy. The jury rejected Allstate's claim.

Originally posted at InjuryBoard by Mike Simon

Allstate Ordered to Reduce Rates

Mike Simon — Fri, 06 Apr 2007 10:48:33 GMT

The Texas Department of Insurance has ordered Allstate to reduce its homeowners insurance rates to Texas homeowners by 5 percent. The order has been affirmed by the Travis County District Court.

The litigation began after an analysis by the Department of Insurance revealed that the rates were excessive. Under the order, Allstate will be required to refund its customers an estimated $56 million.

The Texas Department of Insurance launched another review of homeowners insurance rates early in March after a review of current rates showed that the insurers had another year of solid profits. A study by the Department of Insurance showed that home insurers in Texas had an average loss ratio of 34 percent in 2006, meaning insurers paid out only 34 percent of the premiums they took in to cover property losses.

Originally posted at InjuryBoard by Mike Simon

State Farm Looks Again At Katrina Cases

Mike Simon — Thu, 29 Mar 2007 12:31:32 GMT

As part of a deal with the Mississippi Insurance Commissioner, State Farm has agreed to reexamine 35,000 claims arising out of Hurricane Katrina. The agreement includes claims that are in mediation, those that already in lawsuits, and those that already have been settled.

Under the terms of the deal, State Farm will make a minimum of $50 million available to settle the claims.

Not all viewed the announcement as favorable. Attorneys handling a class action suit against State Farm recently withdrew their request that the court where the case was pending approve the settlement. The request was withdrawn because the parties could not come to an agreement to finalize the deal. According to the attorneys involved in the class action, State Farm's deal with the Mississippi Insurance Commission is a watered down version of the proposed settlement of the class action suit. Moreover, those attorneys believe that the deal could lead to the claimants still receiving low offers from State Farm, and then having little to no recourse.

Originally posted at InjuryBoard by Mike Simon

Katrina Trial Begins

Mike Simon — Mon, 19 Feb 2007 11:34:10 GMT

The first trial of over 4,000 federal lawsuits filed in Louisiana against insurers arising out of Hurricane Katrina began on February 12.

The lawsuit against Allstate Indemnity Company alleges "bad faith" against the insurer. The plaintiffs allege that Allstate failed to promptly or properly adjust their insurance claim, and underpaid them for wind damage sustained in the storm.

Last month a jury in Mississippi awarded $2.5 million in punitive damages in favor of a Biloxi couple against State Farm Fire & Casualty Company. The Court later reduced the award to $1 million.

State Farm has also agreed to pay about $80 million to settle lawsuits by 640 policyholders in Mississippi and pay at least an additional $50 million to thousands of policyholders who have not filed suit.

Originally posted at InjuryBoard by Mike Simon

Should One Hire An Attorney for Insurance Disputes?

Staff Writer — Thu, 24 Aug 2006 11:24:32 GMT

The answer to that question is a resounding yes, and Jack Landskroner in Cleveland points out why: parties who hire representation receive three-times more than those without representation in insurance disputes. Jack reminds us to:

Keep in mind that all insurance companies have scores of attorneys at their fingertips, despite the fact that they would prefer you do not retain counsel. Also remember that most injury attorneys work on a contingency fee basis and only get paid when they win. The contingency fee attorney has a shared interest with the client to obtain the largest recovery available with the least amount of expense in the most expedient manner possible.

So, if you are facing an insurance dispute, it may be important to contact an attorney and protect your legal rights.

Originally posted at InjuryBoard by Staff Writer