Insurer sued by Big Brothers Big Sisters over hurricane claim
The Louisiana chapter of nonprofit BBBS alleges AmGUARD both surveyed Hurricane Laura damage and paid claims in an untimely manner.
Big Brothers Big Sisters (BBBS) of Southwest Louisiana has filed a suit in federal court on Thursday, January 14, against AmGUARD Insurance Co. BBBS, a nonprofit, claims that AmGUARD misrepresented the insurance policy, in effect impacting BBBS’s ability to serve local youth by not paying the amount of estimated Hurricane Laura damages in a timely manner.
According to the complaint, an AmGUARD adjuster inspected the BBBS location on September 7, 2020, two and a half weeks after Hurricane Laura made landfall. AmGuard received the adjuster’s damage estimate on October 15, and AmGUARD determined the replacement costs totaled $98,376. Louisiana state law requires insurers, including AmGUARD, to provide the full amount of the estimate within 30 days of satisfactory proof of loss.
The suit also states that AmGUARD misrepresented the policy by denying coverage for loss of business income. Representation for AmGUARD indicated that the company took that stance because the nonprofit events that BBBS hosted, events like fundraisers and charity drives, were held outside the office. BBBS representation stated that that the office is necessary to plan and organize those events.
BBBS is also seeking damages from additional living expenses, attorney fees, penalties and costs, and legal interest.
BBBS pays over $10,000 annually in insurance premiums and have never missed a payment. The suit also states that BBBS retained an independent adjuster to evaluate the scope of Hurricane Laura’s damages. The adjuster found more than $250,000 in damages.
AmGUARD now has the opportunity to respond or settle.
Editor’s Note: According to Louisiana Revised Statutes § 22:1892, all insurers shall make a written offer to settle any property damage claim, including a third-party claim, within thirty days after receipt of satisfactory proof of loss of that claim.
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