The Louisiana Citizens Property Insurance Corporation has paid a $104 million judgment that will benefit over 18,000 policy holders who sued the company over slow claims adjustments after hurricanes Katrina and Rita struck in 2005. An insurer of last resort is a state-run insurance company that provides coverage to individuals who have been denied coverage by private insurance companies.
By law, insurers are required to adjust claims resulting from storm damage within 30 days of their being filed. In 2009, a state judge ruled that the insurer did not adjust policy holders' claims within the legally allotted time frame.
Even if an insurer ultimately pays your claim, they can still be held accountable for delaying payment beyond the legally mandated time period. All too frequently, insurance companies engage in stalling tactics that delay payments of legitimate claims. This allows them to hold on to the money owed you for longer periods of time, earning interest off the cash that rightfully belongs to you.
Unless an insurance company informs you in writing of their valid reason for delaying claim payment, the practice may reflect Bad Faith on the part of the insurer. If this is the case, you may be entitled to damages which exceed even the amounts covered by your policy.
Before pursuing a bad faith claim, it is always important to consult with an experienced insurance attorney. At Arnold & Itkin, our lawyers have helped represent clients in bad faith claims relating to fire, storm and many other types of damages. If you are considering filing a claim against an insurance company, we can help. Contact our office today for a free and confidential consultation.