A property insurance company has been sued for allegedly not covering financial damages regarding a couple's home incurred as a result of Hurricane Isaac in Aug. 2012. Florida residents are no strangers to the kind of damage that can be wrought by a hurricane, and so it should come as no surprise that the couple who feels they have been wronged sued their insurer for breach of contract. The case is currently being overseen in the couple's home state.
According to the paperwork filed in a judicial district court, the couple claims their insurance provider issued a policy for $202,000 for the home itself, $40,400 for loss of use and an additional $4,040 for other structures on the property. They have claimed to have paid an annual premium of $2,575 between the dates of Aug. 12, 2012 and Aug. 26, 2013. On Aug. 29 of that year, Hurricane Isaac struck the area, damaging their home, most notably their roof.
The claim asserts the insurer did not adequately adjust for the damage to the home, as its damage estimate came to only $1,350. The plaintiffs say they can't repair the damage and prevent more damage in the future for that price. They are accusing the insurer of breach of contract as well as suing for a variety of related expenses. The total amount they are seeking has not been made public.
Purchasing insurance is, in many ways, buying peace of mind against potential threats, as many Florida residents are well aware. However, an insurance contract is just as binding as any other business agreement. If the insurer is found responsible for breach of contract in this case, they may be required to pay out an amount considerably higher than they would have had to if they had adjusted for the damages appropriately to begin with.
Source: louisianarecord.com, "Homeowners sues for alleged breach of contract for Hurricane Isaac damages", Kyle Barnett, June 30, 2014