Yourlawyer.com (Hurricane IKE Insurance Claims News)

Handling of Hurricane Ike Insurance Claims Sparks Complaints

Fri, 05 Dec 2008 00:00:00 -0800

Insurance regulators in Texas say they have already received at least 1700 complaints stemming from Hurricane Ike insurance claims, the Houston Chronicle reports. A representative from the Texas Department of Insurance told the Chronicle that they are monitoring the complaints to make sure they are resolved fairly.

In October, the risk assessment firm Risk Management Solutions estimated that damage costs from Hurricane Ike could go as high as $21 billion. Another report from the Insurance Services Office (ISO) found that Texas led all other states in insured losses this year, owing mostly to the impact of Hurricane Ike, as well as Gustav and Dolly, on the state.    With insurance companies taking a big hit from Ike, it looks like they are scrutinizing damage claims very closely - and some policyholders say, unfairly.

Lowball settlement offers were cited the most by the disgruntled policyholders interviewed by the Chronicle. Some homeowners said they have had to dip into their own pockets to pay public adjusters and engineers to properly evaluate their claims. The complaints involve both private insurance companies, as well as public entities like the Texas Windstorm Association and National Flood Insurance Program, the Chronicle said.

Many of the disputes will likely end up in court. Earlier this week, we reported that Texas judges are already preparing for a deluge of Hurricane Ike insurance claim lawsuits. According to the Associated Press, they have discussed appointing one judge as pretrial judge for all residential insurance lawsuits. The Associated Press said they hope to have a plan in place by January.

One judge told the Associated Press that they wanted to be prepared for a possible repeat of what happened in the aftermath of Hurricane Katrina. Conflicts between Hurricane Katrina homeowners and insurance companies led to more than 1000 lawsuits against insurance companies, the largest number ever to follow a natural disaster in the US.

Many of the Katrina lawsuits involved disputes over whether damage was caused by wind or flood. Much of the damage from Katrina was the result of storm surge, which insurance companies deem to be flood damage. Normal insurance doesn't cover flooding.   However, policyholders and their advocates argued that since storm surge is only caused by wind, damage from it should be attributed to wind and covered by homeowners insurance.

A 2008 Government Accountability Office (GAO) report on insurance issues from Hurricane Katrina urged better assessment of “the accuracy of flood payments on hurricane-damaged properties.”   Insurance companies’ handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

Texas Judges Prep for Hurricane Ike Insurance Lawsuits

Mon, 01 Dec 2008 00:00:00 -0800

Judges in Texas are preparing for an onslaught of lawsuits related to Hurricane Ike insurance claims. According to a report in the Associated Press, the judges don't want to be caught off guard like they were in 2005, when hundreds of victims of hurricanes Katrina and Rita sued their homeowners' insurance companies.

In October, the risk assessment firm Risk Management Solutions estimated that damage costs from Hurricane Ike could go as high as $21 billion. Another report from the Insurance Services Office (ISO) found that Texas led all other states in insured losses this year, owing mostly to the impact of Hurricane Ike, as well as Gustav and Dolly, on the state.

While the Associated Press report said that few Texas policy holders have yet to file Hurricane Ike lawsuits, judges in that state expect things to change next year. Shortly after Ike hit, the Texas Windstorm Association, the state's insurer of last resort, said it would not be paying for damage from storm surge, which they consider a flooding event. Other insurance companies follow similar policies.

But consumer advocates argue that because storm surge is caused by hurricane winds, such damage should be classified as wind-caused. "Though this is a predictable industry attempt to deny thousands of legitimate storm surge claims, this position is ludicrous." Alex Winslow, executive director of the consumer group Texas Watch, said in an October memo to state and local officials. "After all, storm surge is a phenomenon peculiar to windstorms, which should be covered by windstorm insurance,”

The storm surge conflict was a major source of complaints among policyholders affected by Hurricanes Katrina and Rita in 2005. Conflicts between Hurricane Katrina homeowners and insurance companies over the storm surge issue led to more than 1000 lawsuits against insurance companies, the largest number ever to follow a natural disaster in the US.

A 2008 Government Accountability (GAO) report urged better assessment of “the accuracy of flood payments on hurricane-damaged properties.” Insurance companies’ handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

Judges in Texas want to be ready if Hurricane Ike results in another deluge of lawsuits. To that end, they have discussed appointing one judge as pretrial judge for all residential insurance lawsuits, the Associated Press said. The move could expedite initial court procedures and ensure consistent pretrial rulings. The Associated Press said they hope to have a plan in place by January.

Hurricane Ike Damage Estimates Surge

Tue, 28 Oct 2008 00:00:00 -0700

A risk assessment group now says damage costs from Hurricane Ike could go as high as $21 billion. That figure would make Hurricane Ike the third most expensive storm in U.S history, behind Hurricanes Katrina and Andrew.

The new estimate from Risk Management Solutions of $13 - $21 billion is higher than the $7 - $21 billon figure the group released just four days after the Sept. 13 storm. The damage estimates include $10 billion to $15 billion for wind and storm surge, $2 billion to $3 billion from inland wind and flood losses and $1 billion to $3 billion in offshore losses.

Meanwhile, another report has found that Texas leads all other states in insured losses this year, owing mostly to the impact of Hurricane Ike, as well as Gustav and Dolly, on the state. The Insurance Services Office (ISO) reports that insured losses from the first three quarters of 2008 amount to $7.7 billion for Texas. The figure is expected to top $10 billion by the end of the year.

According to the ISO, losses from Hurricane Ike, which hit Texas on Sept. 13, could exceed $10 billion. The storm also caused $1.2 billion in insured losses in Ohio. The losses from Hurricane Gustav, which struck in Louisiana on Sept.1, have reached $1.9 billion and insured losses from Hurricane Dolly which struck South Padre Island and south Texas on July 23, could reach $1 billion.

Earlier this month, the Texas Windstorm Association said it hads received around 76,000 damage claims so far from Hurricane Ike. Texas Windstorm Insurance Association general manager Jim Oliver told the Associated Press at the time that the final number of claims that the Association is responsible for will depend on whether damage to a property was caused by wind or storm surge. The Association won’t pay for storm surge damage, which it considers to be flooding. “We are going to look at every single claim individually,” Oliver said. “That is going to make the process slow.”

Shortly after Ike struck the state, a Texas consumer advocacy group criticized the Windstorm Association’s stance on storm surge damage. “Though this is a predictable industry attempt to deny thousands of legitimate storm surge claims, this position is ludicrous. After all, storm surge is a phenomenon peculiar to windstorms, which should be covered by windstorm insurance,” Alex Winslow, executive director of Texas Watch, said in a memo to state and local officials.

Hurricane Ike Claims Number 76,000, Texas Windstorm Association Says

Thu, 09 Oct 2008 00:00:00 -0700

The Texas Windstorm Association has received around 76,000 damage claims so far from Hurricane Ike. While the number of claims coming in has dropped from a high of 6,000 daily, the Associated Press reports that the Association is still receiving anywhere from 700 to 1000 claims each day.

The Texas Windstorm Insurance Association is the wind damage insurer of last resort for thousands of Texans in 14 counties. It was formed after private-sector companies largely pulled out of the coastal market following Hurricanes Katrina and Rita in 2005. The Windstorm Association has more than 142,000 policies in the six most affected counties.

When Hurricane Ike blasted ashore on September 13 as a Category 2 storm, it had sustained winds of 110 miles an hour, and a storm surge as high as 20 feet. Many communities on the Texas Gulf Coast, including Houston and Galveston, sustained significant damage, and flooding was reported as far away as Mississippi. Even as the storm weakened and moved inland, it was still a force to be reckoned with. Damage from high winds and heavy rain was reported as far away as the Midwest and Ohio Valley.

Right after Ike hit, the Insurance Information Institute’s preliminary estimate said the storm could result in more than $11 billion of claims. In addition to being the third most expensive hurricane, it would also be the fifth most expensive insurance event in U.S. history, behind the Sept. 11 terrorist attacks and the Northridge, Calif., earthquake in 1994, the institute said.

Texas Windstorm Insurance Association general manager Jim Oliver told the Associated Press on Wednesday that the final number of claims that the Association is responsible for will depend on whether damage to a property was caused by wind or storm surge. The Association won't pay for storm surge damage, which it considers to be flooding. "We are going to look at every single claim individually," Oliver said. "That is going to make the process slow."

The storm surge conflict was a major source of complaints among policyholders affected by Hurricanes Katrina and Rita in 2005. Conflicts between Hurricane Katrina homeowners and insurance companies over the storm surge issue led to more than 1000 lawsuits against insurance companies, the largest number ever to follow a natural disaster in the US. A 2008 Government Accountability (GAO) report urged better assessment of “the accuracy of flood payments on hurricane-damaged properties.” Insurance companies’ handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

Last month, a Texas consumer advocacy group criticized the Windstorm Association's stance on storm surge damage. “Though this is a predictable industry attempt to deny thousands of legitimate storm surge claims, this position is ludicrous. After all, storm surge is a phenomenon peculiar to windstorms, which should be covered by windstorm insurance,” Alex Winslow, executive director of Texas Watch, said in a memo to state and local officials.

After Double Dose of Ike and Gustav, Louisiana Seeks to Limit "Named Storm" Deductibles

Tue, 07 Oct 2008 00:00:00 -0700

As residents of the Gulf Coast work to rebuild after Hurricanes Ike and Gustav, lawmakers in one state are working on a plan to protect hurricane victims from massive insurance deductibles. The plan being considered in Louisiana would limit insurance companies from imposing more than one storm deductible on policyholders in a single season. The proposal is being put forward by the Louisiana Insurance Commissioner and has the backing of two key state lawmakers.

"Named storm" deductibles are imposed by insurance companies in hurricane zones from the Gulf Coast to New England. These deductibles can be as high as 5 percent of a home's value. In such cases, a policyholder with a home valued at $200,000 would be responsible for a deductible of $10,000. Unfortunately, many people are not even aware that such a policy exists until they make a hurricane damage claim.

As it stands now, in cases were homeowners sustained damage from both Hurricane Gustav, and then Hurricane Ike, the deductible is applied twice - once for each storm. Louisiana Insurance Commissioner Jim Donelon is backing a plan that would only allow insurance companies to assess the named storm deductible once each hurricane season.

In 2004, Florida lawmakers passed such a storm deductible law. The change after the state - and many homeowners - were hit by four named hurricanes, and insurance companies imposed the deductible on each occasion. In the case of a $200,000 home with a 5 percent named storm deductible, a policyholder would be assessed a deductible of $40,000.

Right now, Louisiana state Rep. Chuck Kleckley, R-Lake Charles, chair of the House Insurance Committee; and state Sen. Don Cravins Jr., D-Opelousas, chair of the Senate's insurance panel have backed Donelon's plan. However, Cravins is running for U.S. Congress, and if he is successful, another backer would need to be found.

Jeff Albright, head of the Independent Insurance Agents and Brokers of Louisiana, told the Associated Press that independent agents in the state support limiting the named storm deductible. "This idea makes sense because, for a very small number of people, it can be personally catastrophic if you get hit twice,” Albright said.

People Filing Hurricane Ike Insurance Claims Need to Protect Themselves

Fri, 26 Sep 2008 00:00:00 -0700

Hurricane Ike victims in Texas are reportedly facing long waits for meetings with insurance adjusters. Adjusters are apparently being hindered by the shear number of claims, areas that are still inaccessible and properties with damage so extensive that they require multiple inspections. Many Hurricane Ike policy holders are understandably anxious to have their insurance claims settled so that they can begin rebuilding their lives. But it is important that anyone with a Hurricane Ike insurance claim understand their rights and responsibilities so that in addition to having their claim paid quickly, it is also paid fairly.

According to Texas law, insurance companies usually have 15 days to start investigating a claim once a policyholder lets them know about it. But when a natural disaster strikes, the state's insurance department can extend that deadline by 30 days. That was done on Wednesday. Insurers can take as long as they need to investigate claims, such as sending adjusters and inspectors out to examine damages and collecting reports. Once an investigation is complete, insurance companies have 30 days to decide whether to pay a claim from a natural disaster, compared to 15 days in a non-disaster situation. If the claim is accepted, the company has five days to make the payment. If an insurance company doesn't meet these deadlines, the state can impose fines.

There are some things policyholders can and should do to make sure their insurance company treats their claim fairly, and in a timely manner. It is a good idea to follow up an initial call with an insurance agent with written notice of a claim. One Texas attorney told the Houston Chronicle that such written notice "doesn't have to be anything fancy, just, 'I got hit by a hurricane, so come look at my house and pay me, please.'"

Consumers should also document the entire process. If their insurer unfairly denies all or part of their claim, such documentation will come in handy when they consult an attorney. This would include taking pictures of the damage, saving pictures and samples of anything they have to throw out, documenting every conversation they have with their company and adjuster, and keeping copies of everything they hand to an adjuster or the insurance company. Policyholders also have a right to receive - and should ask for - any third-party reports, such as engineering reports, the homeowner or insurance company orders.

Finally, while its understandable that Hurricane Ike homeowners will want to get their damage claims settled quickly, they should not rush the process. Above all, a policyholder should never sign final proof of losses until they are sure they've found all the damage. If presented with such a document, a consumer with any doubts should let their insurance company know. Once a final proof of loss is signed, it is all but impossible to reopen a claim if more damage is found later.

Hurricane Ike Storm Surge Damage Should be Covered by Windstorm Insurance, Consumer Group Says

Thu, 25 Sep 2008 00:00:00 -0700

A consumer group in Texas is taking issue with the Texas Windstorm Insurance Association's assertions that it will not pay for storm surge damage from Hurricane Ike. The group Texas Watch, contends losses from water damage should be covered because there would have been no storm surge without the hurricane.

The Texas Windstorm Insurance Association became the wind damage insurer of last resort for thousands of Texans in 14 counties because private-sector companies largely pulled out of the coastal market following Hurricanes Katrina and Rita in 2005. The windstorm association has more than 142,000 policies in the six most affected counties. It faces roughly $2 billion potential damage claims from Ike in those counties.

Last week, on a conference call with insurance industry representatives, association general manager Jim Oliver said:"It will be our intention not to pay surge losses. Period." Oliver said. However, Oliver promised that each Hurricane Ike claim will be examined on a case-by-case basis, and no one area will be classified as damaged completely by storm surge.

But Alex Winslow, executive director of Texas Watch, argued that insurers should consider storm surge from hurricanes a wind event. "Though this is a predictable industry attempt to deny thousands of legitimate storm surge claims, this position is ludicrous. After all, storm surge is a phenomenon peculiar to windstorms, which should be covered by windstorm insurance," Winslow said in a memo to state and local officials.

If storm surge damage is categorized as flood damage by insurers, it would only be covered by national flood insurance. According to the Houston Chronicle, only about 20 percent of Galveston County property owners have flood insurance. Galveston was one of the areas hardest hit by Ike.

The total cost from Hurricane Ike is expected to be high. Texas Insurance Commissioner Mike Geeslin told a legislative panel Wednesday that more than 50,000 insurance claims have already been filed and the number could go as high as 300,000. As a result, insurers will be looking for ways to limit their exposure. Attributing damage to storm surge, rather than wind, will help in that effort.

The storm surge conflict was a major source of complaints among policyholders affected by Hurricanes Katrina and Rita in 2005. A 2008 Government Accountability (GAO) report urged better assessment of “the accuracy of flood payments on hurricane-damaged properties.” Insurance companies’ handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

Conflicts between Hurricane Katrina homeowners and insurance companies over the storm surge issue led to more than 1000 lawsuits against insurance companies, the largest number ever to follow a natural disaster in the US.

Hurricane Ike Evacuees Allowed to Return to Galveston

Wed, 24 Sep 2008 00:00:00 -0700

Residents of Galveston, Texas are being allowed to return home today, nearly two weeks after Hurricane Ike ravaged the Gulf Coast community. But as they returned, Galveston's citizens were told to brace for the worst, as an estimated 75 percent of the city's homes are likely inhabitable. As they assess the damage, the will begin filing insurance claims. Texas' insurance commissioner says close to 50,000 insurance claims have already been filed for Hurricane Ike. That number will surely rise as more and more evacuees return home.

Galveston, situated on island along the Texas Gulf Coast sustained a near-direct hit when Hurricane Ike made landfall on Sept. 13. Roughly 45,000 of the city's 57,000 residents fled Galveston Island, along with hundreds of thousands more from other sections of the Texas coast.

As people returned, authorities were warning that Galveston was a "broken" city. Infestations of snakes and other animals is a real concern. Returnees were advised to have their tetanus shots updated, stock up on rat poisoning and keep children away.

Despite the dire warnings, media reports say highways into Galveston were jammed with cars today as many of the city's 57,000 citizens hurried back to see what, if anything, was left of their homes.

Insurance companies, already inundated with claims from Ike, were bracing for more. Most insurers were advising policyholders that it could take between 2 and 7 days for an adjuster to visit their home.

Many of the people living in Galveston likely have windstorm insurance through the Texas Windstorm Insurance Association, the insurer of last resort for 14 coastal counties in the state. Most private insurance companies stopped covering coastal properties after Hurricanes Rita and Katrina.

The association covers 142,566 policies in the six Texas counties hardest hit by Ike. The amount of claims paid through the association depends on how much of the damage is determined to be wind-related. Texas Windstorm Insurance Association policies do not cover flooding and most other water damage.

Last week, the association's board voted to collect an additional $430 million from Texas insurers to bolster claim reserves. According to The Houston Chronicle, the association’s $100 million base, along with part of a $500 million catastrophic reserve trust fund, were already used up paying for damage caused by Hurricane Dolly and Tropical Storm Edouard earlier in the summer. New assessments were needed because the wind pool had only $370 million in its fund. Ultimately, Texas taxpayers will foot some of that bill because insurers can recoup about $230 million through state tax credits.

Hurricane Ike Insurance Claims Response Said to be Slow

Tue, 23 Sep 2008 00:00:00 -0700

Insurance companies are asking policyholders for patience in the wake of Hurricane Ike, as it could be days before many are contacted by adjusters. Though thousands of adjusters and special catastrophe claims handlers have fanned out across hurricane stricken areas in Texas and Louisiana, the shear scope of the disaster is slowing down the process.

The Houston Chronicle is reporting that some adjusters are having trouble visiting policyholders because of fuel shortages throughout the Hurricane Ike damage area. Authorities in some of the worst-hit areas, such of Galveston, are also restricting access. Some policyholders in those areas haven't even been able to file claims yet.

Allstate Insurance is telling Texas policyholders that it could take 2 to 5 days for an adjuster to visit their home after filing a claim. Farmers is telling its policy holders to expect a response time ranging from 4 to 7 days.

By law, companies have to show up at a home within 15 days after receiving notice of a claim, according to the Texas Department of Insurance. However, if an insurance company asks for more information, the 15-day clock is reset. Companies can get 45 more days if they give notice explaining why, 30 days if arson is suspected and another 15 days if state regulators allow for more time because of a major natural disaster.

So far, state regulators have not extended the statutory response time in Texas, according to the Houston Chronicle. Policyholders who don't hear from their adjuster within five days of filing a claim should call the Texas Department of Insurance. complaint line at 800-252-3439.

When Hurricane Ike blasted ashore on September 13 as a Category 2 storm, it had sustained winds of 110 miles an hour, and a storm surge as high as 20 feet. Many communities on the Texas Gulf Coast, including Houston and Galveston, sustained significant damage, and flooding was reported as far away as Mississippi. Even as the storm weakened and moved inland, it was still a force to be reckoned with. Damage from high winds and heavy rain was reported as far away as the Midwest and Ohio Valley.

The Insurance Information Institute’s preliminary estimate said the storm could result in more than $11 billion of claims. That would make Ike the third most expensive storm in U.S. history, behind Hurricanes Katrina and Andrew. In Texas, State Farm, the state's largest insurer, said it had already received 50,000 claims. Farmers had more than 40,000 claims already filed in Texas. The numbers are expected to climb even higher as residents who evacuated return home.

Texas Insurer Seeks More Money for Hurricane Ike, Says it Won't Cover Storm Surge Damage

Thu, 18 Sep 2008 00:00:00 -0700

The Texas Windstorm Insurance Association has voted to collect more money from insurance companies to bolster its reserves. The vote comes on the heels of Hurricane Ike, which could cost the association $4 billion in claims. There are also indications that a dispute between consumer groups in the state and the Texas Windstorm Insurance Association could be brewing, because of the association's claim that its policies do not cover storm surge damage.

The Texas Windstorm Insurance Association is the insurer of last resort for 14 coastal counties in the state. The association covers 142,566 policies in the six Texas counties hardest hit by Ike. The amount of claims paid through the association depends on how much of the damage is determined to be wind-related. Texas Windstorm Insurance Association policies do not cover flooding and most other water damage.

According to The Houston Chronicle, association's $100 million base, along with part of a $500 million catastrophic reserve trust fund, were already used up paying for damage caused by Hurricane Dolly and Tropical Storm Edouard earlier in the summer. The association raises money through assessments on all property and casualty insurers authorized to write coverage in Texas. New assessments were needed because the wind pool had only $370 million in its fund.

On Wednesday, the association's board voted to collect an additional $430 million from Texas insurers to bolster claim reserves. Ultimately, Texas taxpayers will foot some of that bill because insurers can recoup about $230 million through state tax credits.

The association' general manager had originally proposed assessing insurers $830 million. But insurance companies, including State Farm, Farmers, Travelers and USAA, opposed that. Insurance company representatives hold five of nine seats on the board. Given the scope of the damage along the Texas Gulf Coast, combined with the fact that hurricane season is far from over, it is expected that the Texas Windstorm Association will need additional assessments.

Meanwhile, a consumer group is disputing the association's assertion that its polices do not cover damage from storm surge. "A storm surge is a phenomenon peculiar to windstorms, which should be covered by windstorm insurance," Alex Winslow, executive director of Texas Watch, said in a statement.

The Texas Windstorm Association's general manager told the American Statesman that its policies are "very specific" that damages from floods and overflowing of rivers and other bodies of water are not covered. Courts in other states have backed such exclusions, he said.

The storm surge conflict was a major source complaints among policyholders affected by Hurricanes Katrina and Rita in 2005. A 2008 Government Accountability (GAO) report urged better assessment of "the accuracy of flood payments on hurricane-damaged properties." Insurance companies' handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

Hurricane Ike Claims Expected to Reach $11 Billion

Wed, 17 Sep 2008 00:00:00 -0700

With refugees from Hurricane Ike returning to their homes to assess damage, insurance companies are bracing for an avalanche of claims. Some experts estimate that Hurricane Ike could be the third most costly storm in U.S. history, behind Hurricanes Katrina and Andrew

When Hurricane Ike blasted ashore on September 13 as a Category 2 storm, it had sustained winds of 110 miles an hour, and a storm surge as high as 20 feet. Many communities on the Texas Gulf Coast, including Houston and Galveston, sustained significant damage, and flooding was reported as far away as Mississippi. Even as the storm weakened and moved inland, it was still a force to be reckoned with. Damage from high winds and heavy rain was reported as far away as the Midwest and Ohio Valley.

While it could be weeks before the true cost of Ike is known, the Insurance Information Institute's preliminary estimate said the storm could result in more than $11 billion of claims. In addition to being the third most expensive hurricane, it would also be the fifth most expensive insurance event in U.S. history, behind the Sept. 11 terrorist attacks and the Northridge, Calif., earthquake in 1994, the institute said.

The rating service, A.M. Best Company, said that while the cost is expected to be high, insurance claims from Ike are expected to be "manageable given the current overall capital strength of the industry" and won't be an industry-wide "solvency event." Another analyst at Keefe, Bruyette & Woods told the Hartford Courant that while Ike is likely to wipe out third-quarter earnings for some property-casualty insurers that have a material amount of business in the affected area, most companies will report a profit for the full year.

In Texas, there is concern about whether or not the Texas Windstorm Insurance Association, the insurer of last resort for 14 coastal counties, can weather the financial fallout for Ike. According to the Houston Chronicle, the association became the wind damage insurer for hundreds of thousands coastal residents because private-sector companies pulled out of the coastal wind market following Hurricanes Katrina and Rita in 2005.

The Chronicle reports that the association's $100 million base, along with part of a $500 million catastrophic reserve trust fund, were already used up paying for damage caused by Hurricane Dolly and Tropical Storm Edouard earlier in the summer. So it will have to tap its backup funding sources to cover claims from Ike. That ultimately could cost Texas taxpayers.

If past storms are any indication, affected policyholders could have an uphill climb no matter what type of insurance they have. In 2008, the Government Accountability Office (GAO) issued a report that criticized the way the insurance industry handles hurricane damage claims. Following bitter and widespread complaints from some Gulf Coast homeowners about insurance coverage after Hurricanes Katrina and Rita in 2005, the GAO urged better assessment of "the accuracy of flood payments on hurricane-damaged properties." Insurance companies' handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

IKE Insurance Lawyer Claims Denials Lawsuit Wind Flood Damage

Wed, 17 Sep 2008 00:00:00 -0700

Hurricane Ike Insurance Claim Lawyers

Keywords: IKE | Insurance | Lawyer | Claims | Denials | Lawsuit | Wind | Flood | Damage

The lawyers and attorneys at our firm are offering free case evaluations to individuals who feel their insurance companies have treated them unfairly following Hurricane Ike, by delaying, devaluing or denying their insurance claim. It is estimated that Hurricane Ike will be the third most costly hurricane for insurers, and could significantly weaken the industry. Our Hurricane Ike insurance claim lawyers expect that insurance companies will take a tough stance when it comes to approving claims for this disaster, and there is a good chance that some companies will treat their policy holders unfairly. If your insurance company has not treated your claim honestly, we urge you to contact one of our Hurricane Ike insurance claim lawyers as soon as possible to protect your legal rights.

Hurricane Ike smashed into the Texas Gulf Coast on the morning of September 13, 2008, were it caused extensive damage to many communities, including Galveston and Houston. The Category 2 storm had sustained winds of 110 miles an hour and a storm surge as high as 20 feet. At least 2.2 million people were evacuated from the Texas Gulf Coast in the days before the storm, although it is estimated that thousands of others stayed behind. Early counts put the dead at 37, although there were fears that the number would go higher as rescue workers made their way into remote, coastal areas.

Damage from Hurricane Ike spread from Texas into Louisiana and Mississippi. Most of the damage was caused by wind and flooding from the storm surge. As the remnants of Ike moved inland, states in the Midwest and Ohio Valley even reported damage from wind and flooding.

In the days and weeks following Hurricane Ike's landfall, victims will begin the long process of rebuilding. That will involve filing claims with their insurance carriers. Insurance companies will be looking to limit their financial exposure in the wake of Ike, and may not settle claims fairly. Our Hurricane Ike insurance claim lawyers have already helped victims of other storms deal with unscrupulous insurance companies. We are ready to help the victims of this disaster as well.

Hurricane Ike Wind and Flood Damage

It is estimated that Hurricane Ike insurance claims could reach $11 billion. That would make Hurricane Ike the third most costly hurricane in U.S. history, behind Hurricanes Katrina and Andrew. It would also be the fifth most expensive insurance event in U.S. history, behind the Sept. 11 terrorist attacks and the Northridge, Calif., earthquake in 1994, according to the Insurance Information Institute, an industry group. Another report said Ike is likely to wipe out third-quarter earnings for some property-casualty insurers that have a material amount of business in the affected area. Our Hurricane Ike insurance claim lawyers know that insurance companies always put profits ahead of policyholders, and we expect a great number of claims to be denied or devalued in this disaster.

When a hurricane occurs, typical homeowner’s and hurricane insurance policies cover damage to the home and damage to the contents in the home from wind. Most policies also provide coverage for “additional living expenses” while the homeowner is out of the house. These additional living expenses pay for a hotel or a rental home while the damaged property is being repaired. Additionally, most policies provide coverage for debris removal and increased costs associated with bringing the home up to code.

Considering the massive storm surge that accompanied Hurricane Ike, our lawyers believe that the number of flood damage claims from this disaster will be high. Normal homeowner and hurricane insurance policies do not cover flood damage. While hurricane claims are governed by state law, flood claims are governed by federal laws.

It is important after a hurricane to assess if damage from to a property is the result of wind or flood. Often the hurricane insurer will refuse to pay and claim that the damage is due to flood, while the flood insurer will refuse to pay and claim that the damage is due to hurricane. If an insurance company is disputing the cause of damage to you property, you need one of our Hurricane Ike insurance claim lawyers on your side to make sure you are being treated fairly.

Insurance Company Tactics

Insurance companies are obligated by law to handle claims with good faith and fair dealing. Nearly all states have laws governing how insurers deal with claimants and call for insurers to make a written offer to settle a property damage claim in a timely manner - usually 30 days - after they have received "satisfactory proof of loss" for the claim from a policy holder. Unfortunately, when faced with a disaster like Hurricane Ike that involves billions of dollars in damages, insurance companies often look for ways to avoid paying legitimate claims in order to protect their profits.

Our Hurricane Ike insurance claim lawyers are all too familiar with the tactics insurance companies use to avoid paying claims. In 2008, the Government Accountability Office (GAO) issued a report that criticized the way the insurance industry handles hurricane damage claims. Following bitter and widespread complaints from some Gulf Coast homeowners about insurance coverage after Hurricanes Katrina and Rita in 2005, the GAO urged better assessment of "the accuracy of flood payments on hurricane-damaged properties." Insurance companies' handling of damage claims from hurricanes, where both wind and water destroy property, needs closer government scrutiny, the report said.

The GAO report also said questions remain about the Federal Emergency Management Agency's approach to flood-damage claims processed by private insurers for the government under its National Flood Insurance Program (NFIP). The GAO urged Congress to empower the agency to examine both wind and water claims data related to hurricane damages. It also said state regulators need to strengthen licensing and training requirements for insurance adjusters.

Insurance companies became notorious after Hurricane Katrina for the tactic they used to deny legitimate property damage claims. After that disaster, our law firm investigated numerous reports accusing insurance companies of systematically low-balling claims, delaying paying on them or arbitrarily changing the terms of homeowners’ insurance policies. One of the major tactics that insurance companies used in Katrina was to find that property damage was caused by flooding, and not by wind. Our Hurricane Ike insurance claim lawyers expect that insurance companies may try some of the same schemes to avoid paying claims from this storm

Legal Help for Victims of Hurricane Ike Insurance Claim Denials

If you or someone you know has had a Hurricane Ike insurance claim denied, or if you believe that your insurance company has devalued your claim or is not treating you fairly in some other way, you have valuable legal rights. Please fill out our online form, or call 1-800 LAW-INFO (1-800-529-4636) to discuss your case with an experienced Hurricane Ike insurance claim lawyer at our firm.