Louisiana Citizens Property Insurance Corp., Louisiana’s property insurer of last resort, has reached a $23 million settlement with thousands of homeowners who say they were not properly compensated after hurricanes Katrina and Rita for work needed to coordinate storm repairs. The dispute centered around the use of a general contractor.
When repairing a home takes three or more types of specialists, insurers are supposed to pay extra money to cover the cost of a general contractor to coordinate the work – typically 20% of the repair bill – even if the homeowner acts as his own contractor. The settlement must be approved by a judge in state district court in New Orleans. A hearing has been set for November 18th.
The settlement underscores that people are entitled to overhead and profit when three or more trades are involved. That’s not something that insurance companies are necessarily running around telling people. The deal creates a $23 million settlement fund for all parties. The settlement proceeds, after fees and expenses, will be distributed to the Plaintiffs, with payments depending on the amount of damage homeowners had. Citizens is Louisiana’s third-largest property insurer. Alan Canter, a New Orleans lawyer, was lead counsel for the Plaintiffs and he did a very good job.
Source: Insurance Journal
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