BY: Sommers Schwartz | IN: Class Action & Commercial Litigation
Sommers Schwartz attorney Jason J. Thompson has been appointed to serve as interim class co-counsel for a putative class of homeowner policyholders. The lawsuit alleges that the putative class members all purchased homeowners insurance policies from affiliates of the Auto Club Group, but they did not receive the promised coverage for water damage from overflow of plumbing fixtures.
According to the plain language of the policy, property damage caused by an overflow, which originates from a plumbing condition or failure inside the home, is supposed to be covered up to the policy limit. Damage caused by a backup, which originates from an external source like the municipal sewer system, is not covered (or is covered only up to $5,000 or $10,000 with purchase of an additional rider). The lawsuit alleges that, around March 2009, the insurers began to treat all water damage claims as backups, which saved them the money that they should have spent investigating the actual cause of the water damage and paying the overflow claims of their policyholders.
If your home is insured through an affiliate of the Auto Club Group and you have had an overflow claim denied or treated as a backup, please contact the attorneys of Sommers Schwartz today.
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