July 11th, 2006

The Hurricanes and the Insurance Companies – The Saga Continues

Act 739 of 2006 extends to September 1, 2007 in the case of Hurricane Katrina and October 1, 2007 in the case of Hurricane Rita, the time policyholders have for filing “a claim with their insurer for damages” under homeowners, personal property, tenant, condominium owners’ or commercial property insurance policies.  The Act says nothing about filing a lawsuit against the insurance company, which is left to Act 802, which extends to August 30, 2007 in the case of Katrina and September 25, 2007 in the case of Rita, any claim seeking to recover for loss or damage to property on any homeowners, tenant condominium, personal property, commercial property, flood insurance or automobile or fleet policy, if the loss or damage was caused by Hurricanes Katrina or Rita. 

The two acts have the usual legislative disregard for the English language, but HB 1302 authorizes any citizen to immediately sue in Baton Rouge for a declaratory judgment on its constitutionality, and Act 739 directs the Attorney General to sue for a declaratory judgment on its constitutionality as well as the constitutionality of Act 802.

Until these Acts are decided on by the courts, policyholders would be well advised not to assume that they are able to wait beyond August 29, 2006, in the case of Katrina, to file suit.

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