The damage resulted from damage cause by Hurricane Katrina. Although State Farm was ordered to pay nearly $180,000, the homeowners stated that because of the deterioration of their home caused by the lapse of time between the damage and State Farm's payment, it was likely that the home would have to be demolished.
In Georgia, homeowners' insurance claims are governed by strict and specific laws that provide some protection to homeowners, and penalties against insurance companies that refuse to properly pay benefits after home damage, but these must often be carefully followed within a limited time period in order to be effective. Because of this, individuals who make claims against their insurers without knowledge of the law often fail to avail themselves of the remedies they may have under Georgia law, which ultimately benefits the insurance company that has acted in bad faith in failing to pay their damages. Our firm has represented a number of individuals and families in successfully recovering against their own insurers when the insurer fails to live up to its end of the insurance contract, but all too often we are approached by prospective clients who have simply waited to long, or who have failed to follow the proper procedures, to make their case a viable claim. Check back soon for an article explaining your rights in homeowners' insurance claims.