New Hurricane Claim Laws
Hurricane Claim Laws
New Hurricane Claim Laws Effective July 1, 2024
As of July 1, 2024, new laws will govern how hurricane claims are handled by insurance companies and their policyholders. These changes impose different obligations on both insurance companies and homeowners, notably increasing the duties placed on you, the insured. Montiel Hodge is here to help you navigate these shifts.
What’s Covered?
A Catastrophic Loss is defined as a loss arising from a natural disaster, windstorm, or significant weather event that has been:
Presidentially Declared as an emergency or disaster
Gubernatorially Declared as an emergency or disaster
Time Periods for Claims
Residential Property: Your insurance company must pay the claim amount within 60 days of receiving satisfactory proof of loss.
Commercial Property: Payment must occur within 90 days of receiving satisfactory proof of loss.
Your Good Faith Duties
Under Louisiana law, while insurance companies are required to adjust claims in good faith, the updated La. R.S. 22:1892 also places a duty of good faith and fair dealing on homeowners. This includes:
Complying with affirmative contractual duties in your specific policy.
Avoiding misrepresentation of facts or policy provisions.
Submitting estimates and claims that have a basis for coverage and evidentiary support.
This duty also extends to any representative assisting you in the claims process, such as public adjusters or family members.
Cure Period Notice to Your Insurer
After submitting your claim, the insurance company may:
Adjust your claim in good faith and pay accordingly.
Withhold payment or deny your claim.
Tender partial payment for your claim.
If your insurer takes options (2) or (3), Louisiana law requires you to provide a written "Cure Period Notice" detailing the facts and circumstances of your claim.
Three Scenarios That Can Occur With Your Insurance Claim
Insurance Company Pays Full Amount Within 60 Days
If your insurer pays the full amount within 60 days after receiving the Cure Notice, including actual expenses claimed and attorney fees, they shall be deemed to have fulfilled their obligation.Insurance Company Makes Partial Payment Within 60 Days
If your insurer makes a partial payment, they will incur penalties based on how much is paid versus what is owed.Insurance Company Does Not Pay At All
If no payment is made, Montiel Hodge can assist with submitting the Notice to Cure to your insurer, which may result in the insurance company being liable for penalties and attorney’s fees in addition to your claim.
Disclaimer
This material is for informational purposes only and does not constitute legal advice. It does not create a client-lawyer relationship between Montiel Hodge and any recipient. Consult with legal counsel before taking action based on this information. This material may be considered attorney advertising in certain jurisdictions.
