A class action lawsuit has been filed against Reliable Life Insurance Co., Capital County Mutual Fire Insurance Co., Prudential General Insurance & Casualty Insurance Co.., Old Reliable Insurance Co. and Hartford Insurance Co. of the Midwest. The suit alleges fraud and claims that the home insurance companies are improperly profiting at the expense of policy holders when paying claims for loss or damage to real estate by leaving homeowners to pay the expense of general contractors.
"These underpayments, in the form of failing to pay general contractors' profit and overhead, have generated extensive profits and ill-gotten gains to (the insurance companies)," according to the lawsuit.
