Morrisville Couple Beat State Farm In Court For Slashing Their Homeowner’s Policy
But the new policy provision actually slashed coverage for homeowners, despite being in a section called “additional coverages,” a
Now, the
“They’ve added this entire provision into your policy and they call it additional coverage,” said
In a statement,
The insurer’s lawyers had noted that the notice to homeowners included the bold heading “Potential Reduction in Coverage.” The notice also advised policyholders to view the amendment as “either an actual or potential” reduction or elimination of coverage. The Aguiars did not have to renew their policy after receiving it, and the amended policy did not cover their insurance claim,
At issue was a toilet overflow that flooded a master bathroom and a policy provision that deals with accessing broken water lines.
In
Previously, the Aguiars’
By contrast, the new provision covered costs for tearing out “only that particular part of the building” that is needed to access the “specific point” where water or steam escaped.
State Farm’s notice of the language revision told homeowners the change “could potentially reduce or eliminate coverage depending on how it is interpreted.”
“It was very difficult for a consumer to understand,"
The Aguiars sued
In
“I think there was clearly confusion and misunderstanding generated by what was sent out by
DiUlio, who unsuccessfully tried to turn the case into a
“This change has been nationally implemented. So this is not something that is just going to affect 100 or 200 people,” said DiUlio, of the firm Wheeler, DiUlio & Barnabei in
A proposed class-action case started in 2007 and lasted nearly eight years before the parties settled in
Meanwhile, in
Asked whether
“In recognition of a fluid and ever-changing environment and industry, we regularly review and amend our policy language,” she said in an email.
___
(c)2019 Philly.com
Visit Philly.com at www.philly.com
Distributed by Tribune Content Agency, LLC.
79 Groups to Senators: Barr Would Be Sessions 2.0 and Must Be Opposed
Rep. Garamendi Introduces Bill to Allow Repair of Agricultural Structures
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News