According to the Schall Law Firm, the investigation will focus on whether the insurers upheld their duty of good faith and fair dealing.
They claim that after some homeowners purchased their insurance policies, their carriers created a separate deductible for wind, tornado and hail damage that exceeded the general deductible in the policy they originally agreed to. They allege that the affected homeowners originally signed policies that provided coverage for the current cost of repairing damage from these perils, but that these policies were later changed to only pay the actual cash value of damages. ACV claims are often much smaller than those with full replacement coverage, as they account for the depreciated value of dwellings and property.
Schall is currently seeking homeowners' insurance customers of State Farm, Travelers and Progressive who unexpectedly faced a higher deductible payment when submitting a claim for weather-related damage or believe they were switched to an ACV homeowners' insurance policy without their consent.
More information about the investigation can be found here.
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