Denied Hurricane Claims: How can you afford an attorney and get your house repaired?
Many homeowners approach us with the same story, “we paid our insurance premiums for many years and never made a claim, and now the insurance company has told us that they are denying our claim.” Now their concern is how can I afford to hire an attorney if I already can’t afford to fix my home?
The answer is simple in Louisiana. Penalties and Attorney fees provisions in the insurance code make up the difference. Both La R.S. 23: 1892 and La R.S. 23: 1973 can be used by homeowners to pay for attorney fees in addition to fixing their home.
To illustrate this further, let’s do the math.
Homeowner (A) has $25,000 in damage from the Hurricane. His deductible is $5,000. The insurance company refused to pay his claim. If he obtains an attorney he will have to pay the attorney fee plus his deductible and he won’t have enough money to pay for his damages right? Wrong.
Example of 1892 Penalties: Homeowner (A) submits proof of loss to his insurance company of $25,000. His insurance company fails to respond in the first 30 days. He is now entitled to $20,000+$10,000 (penalty)+10,000 (attorney fee award). If the attorney is charging 1/3 of the recovery, the math is simple. The homeowner gets $26,666.66 and the attorney receives $13,333.34. Thus, the homeowner receives enough money to fix his home including the deductible and the attorney is paid.
Example of 1973 Penalties Mixed and Matched with 1892: Homeowner (A) submits proof of loss to his insurance company of $25,000. His insurance company fails to respond in 60 days. He is now entitled to $20,000+$20,000 (penalty)+10,000 (attorney fee award). If the attorney is charging 1/3 of the recovery, the math is simple. The homeowner gets $33,333.33 and the attorney receives $16,666.67. Thus, the homeowner receives enough money to fix his home including the deductible and the attorney is paid.
These two statutes are here for a reason. Use them to help pay for your claim. Penalties and attorney fees can make up the difference in both your deductible and the cost of hiring an attorney.
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