Hurricane Francine: Homeowner’s Be Prepared with Louisiana’s New Laws
As of July 1, 2024, new laws govern how hurricane claims are to be handled by insurance companies and importantly their policy holders. It is important to note that these new laws place different obligations on insurance companies and homeowners. A notable change also places increased duties and obligations upon you, the insured. Montiel Hodge is here to help you navigate these changes.
What’s Covered?
A Catastrophic Loss is a loss that arises from a natural disaster, windstorm, significant weather that was:
(1) presidentially declared emergency or disaster or
(2) gubernatorially declared emergency or disaster.
Time periods for Residential Property and Commercial Property
Residential Property: Your insurance company shall transmit payment of the amount of any claim due to any insured within 60 days of receipt of satisfactory proof of loss.
Commercial Property: Your insurance company shall transmit payment of the amount of any claim due to any insured within 90 days of receipt of satisfactory proof of loss.
Your Good Faith Duties:
While an insurance company, under Louisiana law, has been required to adjust your claim in good faith, updated and amended La. R.S. 22:1892, also places the duty of good faith and fair dealing upon the homeowner/claimant during the presentation of his/her claim to their insurance carrier. Some acts that may constitute a breach of a homeowner’s/insured’s good faith duty include under Louisiana’s updated law include:
The claimant’s failure to comply with affirmative contractual duties and obligations as outlined in your specific policy.
The claimant’s misrepresentation by the claimant of pertinent facts or policy provisions
The claimant’s submission of estimates and/or claims for damages that lack a basis for coverage or evidentiary support.
Further, the requirement of good faith and fair dealing also imputes to any representative acting on your behalf/assisting in the claims process, including public adjuster, family members assisting with your claim, etc.
The “Cure Period Notice” to Your Insurer by You
After submitting your claim, an insurance company may 1) adjust your claim in good faith and pay your claim accordingly, 2) withhold payment all together and/or deny your claim, or 3) tender partial payment for your claim (i.e. not fully compensate you for your loss). In pursuit of your claim, if your insurer acts within option (2) or (3), Louisiana law requires you (the homeowner) to submit a written “cure period notice” to the insurance company providing sufficient notice of the facts and circumstances of your claim. This is a new step added by the legislature during your claim process
The 3 Big Scenarios that Can Occur with your Insurance Claim:
Insurance Company pays the full amount within 60-days after receiving the Cure Notice
If your insurance company meets these conditions: (1) pays within 60 days after receiving the cure period notice, (2) the full amount alleged to be in the notice, (3) with any actual expenses incurred by the homeowner that were in the notice, (4) including any attorney fees – then your insurance company shall be deemed to have done its job.
Insurance Company makes a partial payment within 60-days after receiving the Cure Notice
If your insurance company: (1) makes a partial payment of the cure period notice within 60 days. Your insurance company will be penalized depending on how much it pays and how much it really owes.
Insurance Company Does Not Pay At All
Montiel Hodge can assist with submitting Notice to Cure to your insurer to keep your claim moving forward. The insurance company will often have to pay penalties and attorney’s fees in addition to your claim. Do not hesitate to fix your property!
Disclaimer: This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between Montiel Hodge and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions.
