Slow responses to claims and a lack of communication. A revolving door of insurance adjusters assessing damages. Low payment offers with arbitrary depreciation.
For many River Parish residents, it was bad enough to have their homes seriously damaged and, in some cases, completely destroyed by Hurricane Ida. In the long path of rebuilding, having to battle with the insurance company just adds another complicated and often time-consuming layer.
Luling attorney Loyd Bourgeois has a unique perspective on insurance claims. He has worked hurricane claims for Katrina, Rita, Issac, Laura, Delta, and Zeta. First, he worked for a New Orleans firm defending insurance companies and then opened his own firm in Luling and began fighting for homeowners. With Hurricane Ida, he has had to file his own claims after sustaining major damage to his business and his home.
“I’ve really seen and worked these claims from every angle at this point,” he says.
Bourgeois reports having a steady stream of calls in the past few months from desperate homeowners who are scared they will not recover sufficient funds to rebuild their homes. He says that many times the insurance company’s initial adjustment ignores obvious damages and underpays other items. He can understand their frustration because he is going through the same thing.
Bourgeois wanted to get a better idea of the experience of residents with their insurance companies in the aftermath of Hurricane Ida. So, he conducted online surveys at the one month and three-month points after the storm.
The average survey respondent reported that the insurance companies initial estimate would only cover 55% of the amount estimated by the contractor to be needed for repairs. The average grade given to their insurance company was a D. The same average grade was given at the one-month mark. Bourgeois said he was slightly surprised that the results of the survey changed so little. In the one-month survey, 31% of people thought their insurance estimate was fair. In the three-month survey, that number only rose to 37%. He expected that number to rise higher as insurance adjusters had time to catch up and as people began receiving supplemental payments. But that was not the case.
Bourgeois’ main advice to residents is that they may not need a lawyer, but they do need to know their rights. Originally, most of the people calling his office did not need to hire an attorney, and he let them know that. They just needed some guidance. However, as time goes by, he is receiving more and more calls from people who are at a total standstill with their insurance company along with many who likely have “bad faith” claims. When an insurance company wrongly delays or denies a valid claim, they’re acting in bad faith. Insurance companies found to be acting in bad faith can be forced to pay additional penalties to the homeowner.
“It’s impossible to give blanket advice because almost every policy is written differently, and no two insurance companies handle their claims in the same way. But there are some things you can do to help protect yourself,” Bourgeois says. He recommends to his clients that they primarily communicate with their insurance company in writing. When speaking on the phone, record your phone calls with the insurance adjuster and after the call, send an email to the adjuster with a summary of your phone conversation. If you call and are unable to speak to anyone, send an email documenting that as well.
Bourgeois says, “The more money you can get from the insurance company before formally hiring a lawyer, the better off you will be. You also want to make sure that the attorney is not taking a percentage of your entire claim, but only charging based on the amount that the payment increased after hiring the lawyer.”
Attorney Loyd Bourgeois will be guest speaking at two St. Charles Parish Department of Community Services hurricane help information sessions. Anyone who is still struggling with the aftereffects of Hurricane Ida, has unanswered questions, or needs advice for their next steps is invited to attend. Sessions will be held on February 3 at 11 am at the Killona Community Center, 201 LA Hwy 3141, Killona, LA and February 8 at noon at the St. Rose Community Center, 608 Mockingbird Lane, St. Rose, LA.
For more information about hurricane insurance claims and for the full results of Bourgeois’ insurance claim surveys, visit his website at www.LJBLegal.com.
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