[StBernard] Council Asks State to Sue Insurance Companies

[Westley Annis]

Council Asks State to Sue Insurance Companies 

November 17, 2005

By: Steve Cannizaro


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Council asks state Attorney General to sue insurance industry over
post-Katrina problems.

The Parish Council voted 5-1 Tuesday to ask the state Attorney General to
sue the insurance industry for allegedly failing to provide reasonable
coverage and benefits on homeowner policies in St. Bernard Parish, claiming
they have been unresponsive to many parish residents with legitimate claims
of damage in Hurricane Katrina.

A resolution was introduced by Council member Craig Taffaro Jr. and seconded
by member Mark Madary. Taffaro said the Attorney General's office already
has a committee looking into the possibility of such a lawsuit.

Taffaro has also asked parish residents to come forward if they have video
footage of wind causing damage during Katrina, which would be proof that the
flood wasn't the only source of damage to homes and businesses.

Many residents are being "stonewalled'' by insurance companies who claim all
damage is flood-related and, therefore, not eligible for payment under
homeowner policies, Taffaro said. Many residents have also complained of not
being able to get homeowner insurance adjusters to come to their homes, he
said.

Residents can file complains with state Insurance Commissioner Robert
Wooley's office in Baton Rouge.

Council member Lynn Dean voted against the resolution to seek a possible
lawsuit, saying, "All you will do (by suing) is force the cost of insurance
to go higher'' as companies fight a suit, Dean said. He said individuals or
groups who feel they are being denied unfairly denied damage claims can file
suit if they want but the Parish Council "shouldn't get involved.''