Raizner Law has filed a hail damage insurance lawsuit on behalf of an Ohio condominium owners association against Allstate Insurance Company after its insurance claim was wrongfully denied.
The property consists of 13 condominium buildings with approximately 140 units. On May 30, 2015, a wind and hailstorm swept through the area and pelted the property with hail one-inch in diameter. The wind and hail caused substantial damage to the property, including damage to the siding, roof structures, and HVAC units. Our client reported the hailstorm damage to Allstate and asked that the cost of repairs be covered pursuant to the policy.
In response to the claim, Allstate assigned the claim to a claims representative located in Irving, Texas. In turn, the claims representative engaged the help of an engineering firm to evaluate the damage. The investigation of the property only lasted approximately one hour and no investigation of the roof was conducted. The engineering firm was not hired to investigate the damages, but rather the exact date the damage occurred to determine whether or not the damage occurred during the coverage period. The engineering firm relied on “observation reports” from “storm spotters” throughout the United States, which are “not official records” but were “summarized and eventually reported by the National Climatic Data Center (NCDC).” However, the engineering firm did not provide any of those “observation reports,” records, or other NCDC data in support of its conclusions.
Based solely on these observation reports, Allstate denied the insurance claim alleging the damage occurred outside of the coverage period. Allstate did not provide any supporting documentation for its conclusion.
Allstate Violated Ohio Insurance Law
Ohio law requires Allstate to act in good faith in handling and paying the claims of its insured. The requirement to act in good faith includes both the duty to investigate in good faith and provide a reasonable justification for denial. Allstate failed to exercise good faith in the processing of a claim.
Hail Damage Insurance Lawsuits
Policyholders that regularly pay their premium deserve full coverage pursuant to their policies. Insurance companies that wrongfully deny valid claims need to be held accountable for their actions. If your insurance company has wrongfully denied your condominium owners association insurance claim, contact Raizner Law today for a free consultation to discuss your case.