Louisiana Issues Reminder to Insurers Regarding Obligations to Policyholders After Hurricane Ida
The Louisiana Department of Insurance issued a bulletin on October 27 reminding insurers who offer property and casualty coverage in the state of their obligations to policyholders in the aftermath of Hurricane Ida, including the following:
Policyholders Are Entitled to See Estimates, Bids and Reports for Claim
Under La. R. S. 22:41 (14 ), policyholders have the right to request and receive from their insurer statements or documents related to the adjustment of their claim, such as:
- Engineer reports
- Contractor reports
60 Days to Initiating the Claims Process
In the case of a catastrophic loss event, insurers must initiate loss adjustment of a property damage claim within 30 days after being notified by the policyholder. However, due to the severity of the devastation caused by Hurricane Ida, Emergency Rule 47 extended that timeframe by an additional 30 days.
Policyholders Are Entitled to Timely Communication and Good Faith Settlement
Insurers should communicate promptly with their policyholders during the entire claim adjustment process, through the initial claim payment and any supplemental claims processing. In fact, insurers are required by law to respond to all inquiries or requests from their policyholders within 14 days.
Under La. R.S. 22:1964(14)(f) and La. R.S. 22:1973(A), insurers must attempt, in good faith, to promptly, fairly, and equitably settle claims.
Rules Regarding Cancellations, Non-renewals and Change in Risk
Under La. R.S. 22:1336, insurers cannot cancel, fail to renew, or increase the amount of a policyholder’s premium based solely upon a loss caused by an “Act of God.” except at the beginning of a new policy period on a homeowner’s policy of insurance on an areawide rating basis.
Insurance companies also cannot attempt to classify damage caused by Hurricane Ida as a “material change in the risk” for purposes of cancellation or non-renewal while claims from Hurricane Ida are being adjusted and paid.
Unpaid Premiums and Paying Claims
In § 4715 of ER 47, an insurer may deduct unpaid premiums from a claim payment. Also regarding payments to policyholders, La. RS. 22:41 (13) requires that insurers pay undisputed claims within 30 days of satisfactory proof of loss.
Get Help Obtaining Full Compensation for Your New Orleans Hurricane Claims
Despite the number or rules and regulations governing how insurance companies must handle claims after a hurricane, insurers still frequently undervalue, delay and outright deny claims. When insurers fail to uphold their obligations to policyholders after a hurricane, the New Orleans hurricane insurance attorneys at JJC Law are here to fight for you.
We offer free initial consultations for our services and will take your hurricane insurance claim on contingency fee. Call us today at (504) 513-8820 or contact us online to discuss your claim now.