Louisiana Insurance Lawyer Blog

If a tree falls on your house or building because of Tropical Storm Lee, you should make a claim with your own insurance regardless of whether the tree was growing on your property or another person's property before the storm.

Fortunately, you should not have to pay a hurricane deductible since Tropical Storm Lee is not a hurricane. Make sure to take photographs of the tree before removing it from the home.

Furthermore, you should check for structural damage to your home as well as for any damage to your slab. Often times, a slab home will suffer cracks to the slab even to the opposite corner of the home.

If you have any trouble with your Tropical Storm Lee Insurance Claim or even need help hiring an engineer to detect structural damage, contact your storm lawyer, Charles E Lavis Jr

While some longstanding State Farm policyholders may still have a fixed $500 deductible, most Gretna, LaPlace, New Orleans LaCombe, Slidell, Little Woods, Marrero and Bush Homeowners suffering structural damage due to the Spring Hail Storms and tornadoes will probably face a deductibles based upon a percentage of the structural policy limits instead of a fixed deductible of say $500.

Homeowners, be careful as you might be shortchanged when the homeowners insurance adjuster refuses to pay your loss because "the damage is less than the percentage deductible".

The adjuster may have overlooked hidden structural damage or mold or may have miscalculated the cost of repair. Or the adjuster may even go as far as to try improperly exlcude covered damage under a policy provision.

A Hale Damage Lawyer can assist you hiring professional to prove your claim, including engineers, mold and meteorological experts so that you can fully recover your damages, including your recoverable depreciation, debris removal costs and other damages.
.
The Homeowners Insurer must pay the insured homeowners "a figure over which reasonable minds could not differ" within a timer period set by law or be subject to bad faith penalties.

If you have any questions or concerns about your Property Damage Claim call a Property Damage Claims Lawyer.

Louisiana Insurance Laws are found primarily in Louisiana Revised Statutes Title 22. The laws are set forth as follows:

Continue reading "Where Are Louisiana Insurance Laws Found?" »

In a recent Louisiana Supreme Court case involvling defendant Louisiana Citizens Property Insurance Corporation, the Court ruled that filing of a Hurricane Katrina Insurance Class Action designated as a class action pursuant to LSA-C.C.P.art. 591, suspends prescription for all members of the putative class until the district court has ruled on the motion to certify the class. When notice is given, pursuant to LSA-C.C.P.art. 596, the suspended prescription period begins to run again.

Taranto v. Louisiana Citizens Property Insurance Corporation.pdf

Homeowners suffering structural damage due to a Louisiana Tornado, Hurricane or Hail Damage often face a percentage based homeowner's insurance deductible instead of a fixed deductible of say $500 or $1,000. Often times, the homeowners is shortchanged when the insurer refuses to pay maintaining the damage is less than the percentage deductible.

For example, the homeowner's policy may have structural limits of $200,000 with a 5% policy deductible. In this case the insurance company adjuster may determine that the damage is only $9,500, less than the $10,000 deductible (5% of $200,000).

Often times the adjuster overlooks hidden structural damage and mold. Or perhaps the adjuster may maintain that the damaged home or business was not in the direct path of the storm and that the structural damage is unrelated to the storm. Engineering, mold and meteorological experts are often needed to prove these claims.

Furthermore, homeowner's insurers may fail to advance money for Additional Living Expenses, or fail to pay for Recoverable Depreciation, Debris Removal or Lost Profits due to a Business Interruption. Or the homeowners or business owner may haphazardly complete the content list.

If you have any questions or need help with your wind damage claim, contact an attorney that has handled hundreds of wind damage claims.

Recently, I've had several Louisiana Homeowners Insurance Claimants contact my office about their mortgage company holding onto their insurance money. Often times the person has a hurricane insurance claim, fire insurance claim or other homeowners claim and has completed repairs or has nearly completed repairs. For whatever reason the mortgage company is giving the homeowner the runaround on disbursing the money.

Although the mortgage company, as additional insured on the policy, has a right to make sure the repairs are made. Sometimes the mortgage company exceeds its authority. You can try to resolve this problem on your own by completing a complaint form with State of Louisiana Office of Financial Institutions. You can also call a Louisiana insurance dispute lawyer for assistance with this matter.

A hard freeze warning is in effect tonight and Tuesday morining with lows forcase to be in the upper teens to lower 20s in the New Orleans, Slidell, Lafayette, Baton Rouge, New Iberia and Lake Charles areas.

In the morning, if you open a faucet and no water comes out, call a plumber. If a water pipe bursts, turn off the water at the main shut-off valve; leave the faucet(s) open until repairs are completed.

After experiencing a burst pipe, contact your agent or insurance company to file a claim. An adjuster should contact you within a few days of filing your claim. If you do not hear from an adjuster, you can contact your insurance agent or company again. Make sure you have the following information handy:

•The name of your insurance company
•Your policy number
•A telephone and/or email address where you can be reached at all times

Separate damaged from undamaged property. Your adjuster will need evidence of the damage to your home and possessions to prepare your repair estimate.

•Take photographs of all of the damaged property, including discarded objects, structural damage,.
•Make a list of damaged or lost items and include their date of purchase, value, and receipts, if possible.

Your adjuster will provide you a Proof of Loss form--your official claim for damages. You'll need to file this claim with your insurance company within the time allowed by law. This document substantiates the insurance claim and may be required before the insurance company can make payment.

In a recent New York Times article, Amy Bach of United Policyholders provided tips concerning words to avoid when speaking with your insurance representative about a homeowner's insurance property damage claim.

United Policyholders is a a nonprofit group focused on educating consumers about insurance.

Amy says to avoid words like "flood" and "mold" and use language like "There has been an accident at my house, on my property and my property has been damaged, and I'm filing a claim."

The second anniversary of Hurricane Gustav is quickly approaching. Many have still not recieved their supplemental insurance proceeds. Some have been denied. It may not be too late to file your Hurricane Gustav Insurance Lawsuit. If you still do not have enough money to fix your home or business property damage, or have not yet been fully compensated for your business losses or contents claims, or have not been able to afford replace your damaged asbestos slate or terracotta roof, Louisiana Revised Statute 22:868 provides for a period of "twenty-four months next after the inception of the loss" to file a lawsuit for certain types of claims.

Of course, if you wish to pursue a Hurricane Gustav insurance lawsuit, gather your insurance company's estimate and your policy together and hire an attorney immediately to protect your interests as you may be facing very important legal deadlines.

Resources:

Louisiana Revised Statute 22:868

Louisiana Revised Statute 22:47

Louisiana Revised Statute 22:1692

Hurricane Insurance Claims

Now that Hurricane season is here, there are several helpful publications prepared by The Louisiana Department Of Insurance that you may wish to review for informaiton about homeowners, flood and business interruption insurance as well as how to prepare for both before and after the storm. These publications include:

Hurricane Tracking Map and Preparedness Guide.pdf

After the Hurricane Hits.pdf

Weathering the Storm.pdf

What should I do if my property is flooded.pdf

Consumer 101 Fliers for Hurricane Season.pdf

The National Oceanic and Atmospheric Administration is predicting an "active to extremely active" 2010 hurricane season for the Atlantic with 14 to 23 named storms this season, of which 8 to 14 will turn into hurricanes and 3 to 7 of those will grow into major hurricanes with sustained winds of at least 111 miles per hour.

Colorado State University forecasters have issued similar predictions: 15 named storms, 8 hurricanes and 4 major hurricanes.

Additional Resources:

National Oceanic and Atmospheric Administration

Colorado State University's Tropical Meteorology

The Louisiana Senate today passed Louisiana Senator Julie Quinn's bill that could potentially protect homeowners in this state from suffering the consequences of making an insurance claim on a home containing Chinese drywall. This bill would prevent insurance companies from dropping homeowners, increasing premiums, and refusing to renew policies on homes constructed with this material. The legislation is not watertight, but if it is passed, it would provide Louisiana homeowners with some more breathing room and increased assurance that they won't lose insurance for making a claim.

The U.S. Consumer Product Safety Commission (CPSC) describes Chinese drywall as an imported material that can cause a myriad of problems in homes. Telltale signs of Chinese drywall include "blackened and corroded metal," electrical failures/hazards, and health issues (such as breathing problems and itchy skin). This drywall was installed in American homes with dangerous frequency throughout the 2000s, and in the post-Katrina/Rita Gulf Coast area in particular. It is less expensive than regular drywall and, at the time it was widely purchased and installed, its ill effects were not widely known.

Many Louisiana homeowners, in the wake of widespread media coverage regarding Chinese drywall, have discovered the presence of this material in their homes and gone on to make claims with their insurance companies. Unfortunately, a number of these insurance companies have reacted in a way that discourages homeowners from filing valid claims. Insurance companies have withdrawn policyholders' coverage, increased the premium rates on policies, and refused policy renewals for a number of Louisiana homeowners based on the presence of Chinese drywall in their homes. Senator Quinn's bill asserts that if such practices continue, insurance companies will be fined $1,000 for each incident. Fines would not apply to an insurance company which "allows the cancellation, nonrenewal, or increase in premium on an area-wide basis at the beginning of a new policy period."

This development is encouraging, considering that it will encourage Louisiana homeowners to improve their property's quality, not to mention avoid health risks, by making claims that could remove Chinese drywall from their homes. Moreover, insurance companies won't be devastated by this potential bill, as the financial repercussions should not be severe enough to affect their actual capital, according to Moody's Investors Service. The greatest risk to homeowners that could stem from this bill is in the assertion that insurance companies could return to their previous behavior on an "area-wide basis" when policy periods are up. Louisiana homeowners need to pay attention to these developments in the upcoming years if the bill is passed, and ensure that they are diligent about whether or not their insurance company will fault them for Chinese drywall, regardless of the fines their insurer would incur.

The Consumer Products Safety Commission ("CPSC") and the Department of Housing and Urban Development ("HUD") have issued Interim Remediation Guidance that advises Chinese drywall homeowners to remove all possible problem drywall from their homes, and replace electrical components and wiring, gas service piping, fire suppression sprinkler systems, smoke alarms and carbon monoxide alarms.

Taking these steps should help eliminate both the source of the problem drywall and corrosion-damaged components that might cause a safety problem in the home.

Most Chinese drywall victims report that their homes were built in 2006 to 2007, when an unprecedented increase in new construction occurred in part due to the Hurricanes Katrina, Rita and Wilma. Common to many reports submitted to the CPSC regarding homes believed to contain problem drywall have been the following:

• "Rotten egg" smell within the homes;
• Health concerns such as irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infection, and asthma attacks;
• Blackened and corroded metal components in their homes and the frequent replacement of components in air conditioning units.

Additional Resources:

How to Identify Problem Chinese Drywall

CPSC & HUD Interim Remediation Guidance

Residents in northern Louisiana, Shreveport in particular, recently experienced a severe storm that brought significant amounts of hail to the area. Although hail is not as pressing of a threat in Louisiana as it is on the Great Plains (a region that is dubbed "Hail Alley" by the Weather Channel), the damage it causes should still not be taken lightly.

The effects of hail are not always obvious to the casual observer. In extreme cases, hail can destroy structures, break windows, and leave behind unmistakable wreckage. When a hail storm is not so clearly destructive, however, it can damage buildings in such a way that homeowners may not see the need for repairs. Roof damage that results from hail is especially hazardous, because it can cause leaks, structural problem, depreciate a home's value, and it may not appear serious. Photographs of roofs after a hail storm illustrate how shingles, after being peppered with hail, sometimes show nothing more than small circular dents or marks. A homeowner may not notice this damage, or assume that it does not warrant further inspection.

Homeowner's insurance policies in Louisiana do not always include hail damage, which is usually a subsidiary of "wind damage" in policies. If this is the case, such coverage can be purchased separately at extra cost. The costliness of this extra insurance may be exacerbated by insurance companies' treatment of hail damage claims. In Louisiana, deductibles may be percentage based rather than flat rate, corresponding to the home's value and, more often than not, burdening the homeowner with a more substantial out of pocket deductible.

The type of roof is another factor regarding hail damage. Fiberglass shingles are definitively less expensive than many other types of roofing, and are relatively simple to repair or replace. At the opposite end of the financial spectrum, terra cotta and slate roofs can be very expensive if they are damaged. Terra cotta is high in cost, limited in availability, and requires more skill to install or repair the material. Typically, if one shingle on an asbestos slate roof is cracked by hail, the insurance company must pay for the entire roof. A comparable shingle of like kind and quality might be a slate composite shingle like Lamarite. The cost of terra cotta and slate is often double, triple or even quadruple the cost of a shingle roof.

This discrepancy in cost is not overlooked by insurance companies in Louisiana. If your more expensive roof is damaged by hail, an adjustor may suggest that vinyl or fiberglass shingles are your only option for replacement. Such a situation is far more cost-effective for insurance companies, but for the homeowner who is already saddled with a hefty deductible, the prospect of downgrading (and potentially decreasing his home's value with the roofing change) should not be entertained.

If a claim is made, and the insurance company insists upon a reduction in roofing quality, homeowners should pursue further negotiations with their insurance company's adjuster. If all else fails, you may want to speak with your Louisiana insurance lawyer.

Additional Resources:

Storms Bring Hail To Northwest Louisiana (Shreveport Times)

What is Hail?

Photos of Hail Damaged Roofs

Some Louisiana Coastal Policies May Exclude Wind & Hail- Storm Advice For Louisiana Insurance Consumers

Percentage Based Home Insurance Deductibles

State of Louisiana Consumer's Guide To Homeowners Insurance

Understanding Hail Damage & Impacts

If you are a homeowner in Louisiana, the possibility that your property may be affected by a flood is an unfortunate reality. There are physical measures a homeowner can take to protect his property against the threat of a flood, but the prospect that structural mitigation may not be enough should compel a homeowner to seek flood insurance. In this situation, National Flood Insurance Program (NFIP) policies most often come into play.

According to the NFIP, a flood exists "where two or more acres of normally dry land or two or more properties are inundated by water or mudflow." GOHSEP (Governor's Office of Homeland Security and Emergency Preparedness) expands upon this definition to describe how a flood is typically an external event. If the dam or levee behind your property breaks and your home is inundated with water, it is considered a flood. On the other hand, if your pipes burst and your home sustains water damage, it is not a technical flood. Insurance policies for property owners reflect this distinction. When a home is damaged by a legitimate flood, it is a matter for the NFIP to handle. If a home is affected by water, mud or other runoff material not resulting from an actual flood, then it would relate to homeowner's insurance, not the NFIP.

When a homeowner in a "moderate-to-low risk area" applies for flood insurance with the NFIP, he has more than one coverage option. Building and contents can be offered in one premium package, and the NFIP offers additional choices to alleviate the financial burden that flood insurance places on a homeowner. Many Louisiana homeowners do not fit this "moderate-to-low risk" standard. The Preliminary Digital Flood Insurance Rate Maps (DFIRMs) currently used by FEMA and the NFIP illustrate that much of the state is categorized as "high risk." Louisiana homeowners might balk at the price tag for flood insurance, but they may have no power to reject it. The NFIP stipulates that if you are in a high risk area, and your mortgage was acquired through a "federally regulated or insured lender," you must insure your property.

What happens once insurance has been obtained? When flood damage occurs, and the insured approaches the NFIP with a flood claim, he may find that his comprehensive insurance policy does not account for everything. Precious metals, septic systems, and temporary living expenses are among the items not covered by the NFIP. Louisiana homeowners should take care to scrutinize their coverage, or lack thereof, with their agent..

Cost is another factor that must be taken into consideration. NFIP policy rates vary, and a homeowner does have a number of coverage options to choose from, but flood claims are capped at $250,000 for building and $100,000 for contents. Moreover, the annual premiums, and the homeowner's deductible, are costlier in the A and V flood zones (high risk and coastal areas) which comprise much of Louisiana's geography. In a low-risk flood zone, for instance, a homeowner who purchases maximum coverage for building and contents on his property pays an annual premium of $348 or $388, depending upon whether or not he has a basement. The same policy in an A zone costs $2,647, and $5,714 in a V zone. If a homeowner feels that he is still left too vulnerable by the NFIP's coverage limits, he can also purchase "excess" flood insurance, which is offered through a number of general insurance providers in Louisiana. These supplemental policies offer coverage beyond the $250,000 and $100,000 maximums, but they are frequently more expensive. The Louisiana homeowner may find it necessary to purchase an NFIP policy, and perhaps supplemental insurance as a safeguard against flooding, but such precaution certainly does not come cheap.

Additional Resources:

Flooding & Flood Risks Overview

Louisiana Governor's Office of Homelland Security & Preparedness

Louisiana Mapping Project-Charting Our Coastal Future

FEMA- The National Flood Insurance Program