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Louisiana Needs Real Insurance Reform
HB 591, HB 457, HB 458, and HB 179 will protect policyholders from unfair claim practices, hold insurance carriers accountable, and ensure fair payments. The time to act is NOW. Get in touch with lawmakers today and tell them to VOTE yes on this legislation.
Tell Lawmakers To Vote YES
Policyholders Need Help NOW
2020 was one of the worst years on record for Hurricane damage in Louisiana. A total of five named storms impacted the state with 3 of them making landfall as Category 2 hurricanes. Over 300,000 claims have been filed due to the damage, yet 9 months later, many policyholders are still without roofs over their head. Even more are facing significant delays and are being forced to jump through hoops to get claims paid.
Why Is Legislation Needed?
Due to a significant increase in policyholder complaints, lawmakers are now taking action to stop big insurance companies from taking advantage of policyholders. More than five pieces of legislation has been introduced, and if all are passed, they will provide additional protection for those filing property damage insurance claims. The most important for policyholder rights are HB 591, HB 457, HB 458, and HB 179.
The current legislative session ends on June 10, 2021. The time to act is NOW. Contact your local representatives to let them know the importance of these bills and to vote YES this session to protect policyholders.
How Will New Laws Help Louisiana Policyholders?
Louisiana policyholders have experienced a number of tactics deployed by carriers to deny and/or delay settling claims. The proposed bills are aimed to prevent these situations from happening to more policyholders in the future.
Untrained insurance adjusters cost policyholders thousands of dollars on each property damage claim filed. Missed damage, incorrect reports and major errors are just a few of the things policyholders have to deal with. Insurance companies choose to use untrained employees because it cuts costs by as much as 30% when compared to using skilled adjusters. The proposed legislation will help prevent this from happening in the future.
There are several loopholes in the Louisiana Insurance Code that allow insurance carriers to deny additional living expenses, even if the home is uninhabitable. Right now, insurance policies do not have to pay for hotel or living accommodations if the roof of a home is intact. This means people are living without water, electricity and even huge gaping holes in their homes. Some people, like Will in the video below, have been living in storage trailers designed for cargo ships in their driveway. The proposed legislation will stop this from happening in the future.
Insurance companies in Louisiana have been able to use a variety of tactics to wear policyholders down and get them to settle for less. Policyholders have experienced an endless string of adjusters, requests for unnecessary documentation, and lengthy delays in claim processing. When insurance carriers operate in this way it forces policyholders into what is called “insurance purgatory” where they are unable to make repairs and move on with their lives. The proposed legislation will help prevent this from happening and force insurance carriers to be accountable for bad faith practices.
The proposed legislation will allow policyholders additional options and recourse if the cost to repair damage cannot be agreed upon, often known as an “appraisal”. When an appraisal clause is invoked by a policyholder, independent experts are hired to value the claim and damages. Once the report is complete, it is sent to an Umpire who makes the determination on the amount. This tool is a highly effective alternative to litigation, especially when claims are severely underpaid. Unfortunately, Louisiana policyholders cannot use it because loopholes exist that make the process basically null and void. The proposed legislation would add mandatory appraisal language to policies and close the loopholes for carriers.
Unfair Claim Practices Hurt Policyholders
Incorrect damage assessments, untrained adjusters, lengthy claim delays, and lowballed payments are just a few of the issues policyholders have been forced to deal with since Hurricane Laura hit in October 2020. Policyholders deserve better. New legislation is needed to keep stop unfair claim practices.
Visit Real Reform Louisiana to hear more stories and to share yours.
Make Your Voice Heard
New Legislation Breakdown
HB 591, HB 457, HB 458, and HB 179 are the most important for Louisiana policyholders.
HB 591 will prevent insurance companies from requiring policyholders to use one of their “preferred contractors”. Preferred Contractors or Managed Repair Programs are used by insurance companies to save insurance companies money on home and business repairs. These contractors use sub-par materials, labor and installation methods to cut costs on insurance claims, leaving policyholders to deal with the shoddy workmanship later.
HB 591 will also force carriers to follow “matching guidelines”. Without this, insurance carriers only owe for the ‘direct physical damage‘ and do a very minor spot-repair, leaving properties looking like mismatched checkerboards. This bill would dictate that they owe to achieve a reasonable matching, post-loss.
HB 457 will require all third party adjusters hired by insurance companies, to abide by the same standard of training and conduct. Currently, insurance carriers can hire whomever they want to to adjust policyholder claims, even if they do not have the training or license to do so. The major problem for consumers is their lack of oversight, standards, bonding, insurance, education, contract privity to the consumer and lack of oversight from the Department of Insurance. If these adjusters make a mistake there is virtually no accountability. HB 457 would stop this and require all claim experts to be trained and accountable for their actions.
HB 458 will close some loopholes in policies and clarify when Additional Living Expenses (ALE) should be paid when a claim is filed. Some carriers have asserted that if you have a roof overhead, the property is livable and therefore ALE’s are not covered. As so many policyholders dealing with hurricane damage know this is not true. HB 458 would update the insurance code and trigger coverage for ALE when the homeowner experiences a stoppage of utilities for 24 hours, making the property uninhabitable.
When Is Enough, Enough?
Policyholders are still waiting for their insurance companies to settle Hurricane Laura, Delta and Zeta claims. Without new laws insurance companies will continue to use deceptive claim practices to deny and delay valid claims.
Visit Real Reform Louisiana to hear more stories and to share yours.
Make Your Voice Heard - Take Action NOW
Lawmakers need to hear from policyholders NOW on the importance of HB 591, HB 457, HB 458, and HB 179. Connect with your representatives and tell them to VOTE YES and protect policyholder rights. Click below to send a tailored message in less than 60 seconds and make sure your rights are protected.
