A proposed federal class-action lawsuit alleges thousands of Texas coastal homeowners may have been underpaid for Hurricane Beryl damage after insurance estimates were substantially reduced without the knowledge of the adjusters who inspected the properties.
The lawsuit targets the Texas Windstorm Insurance Association (TWIA), outside adjusting companies, and individuals involved in processing claims. The allegations haven’t been proven, and a federal judge has not certified the case as a class action.
Major claim reductions
The lawsuit was filed by homeowners Ernestine Bell, Alicia Stuart, and David Mohun. Their attorneys say field adjusters inspected their properties and prepared initial estimates before other individuals allegedly altered the estimates.
Stuart’s estimate reportedly fell from about $90,948 to $30,817, a 66% reduction. Mohun’s allegedly dropped from $55,406 to $31,013, while Bell’s was reduced from $22,464 to $10,389.
“What they got was not what they bargained for,” attorney Shaun Hodge said.
Digital trail
Attorneys say Xactimate, the estimating software used for the claims, contains digital records showing who accessed and changed estimates. In Bell’s case, records cited in the complaint allegedly show David R. J. DeVilbiss changed an estimate from $26,235.85 to $10,111.03, a 61.5% reduction.
Attorney Craig Eiland said the original field adjuster, Lee Olivares, provided an affidavit saying he neither knew about nor approved the changes.
“The good thing about Xactimate is it has digital fingerprints,” said Eiland.
The lawsuit also alleges DeVilbiss was the brother of a high-ranking TWIA claims executive. Plaintiffs say that the relationship raises questions about TWIA’s oversight of Leading Edge Claims Service, an independent adjusting firm hired to assist with Beryl claims.
“We believe this impacts tens of thousands of homeowners who filed a claim after Hurricane Beryl.”
Thousands potentially affected
The plaintiffs’ attorneys say their review found that more than 80% of estimates prepared by the same field adjuster were subsequently revised.
Hodge estimates that 20,000 to 25,000 homeowners could have been affected, with damages potentially reaching hundreds of millions of dollars.
“We believe this impacts tens of thousands of homeowners who filed a claim after Hurricane Beryl,” said Hodge.
If you are a Texas coastal homeowner who believes you may have been underpaid for damage caused by Hurricane Beryl, contact the Hodge Law Firm at 855-307-0429 or email shodge@hudgefirm.com.