Nearly four years after Hurricane Katrina destroyed thousands of homes along the Gulf Coast, the effects of the devastating hurricane continue to be felt by both homeowners and insurance providers.
In August 2009, Louisiana Citizen’s Insurance continued to fight for the right to appeal a class action settlement that has ballooned to $95 million, some four years after Hurricane Katina.
The lawsuit was initiated by Citizen’s Insurance policyholders because of the way the company-which is financially backed by the state of Louisiana- failed to respond to the victims of Hurricane Katrina.
Listed below are a few details related to the Louisiana Citizen’s Insurance lawsuit:
- Plaintiffs assert that Citizen’s Insurance responded too slowly to policy claims
- Case was originally settled for $92.8 million to be paid to 18,573 policyholders and now with interest, has increased to 95 million
This trial is just one of many lawsuits that were filed against insurance companies after Hurricane Katrina destroyed thousands of insured homes. Many disputes centered on whether home damage was caused by wind-which is covered by standard insurance policies-or flood damage, which is not covered in standard insurance policies. These trials illustrate a need for consumers to purchase hurricane and flood insurance policies well in advance of hurricane season.
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