A class action lawsuit has been filed against Hartford Insurance Company alleging that the Hartford refused to pay replacement cost coverage on Hurricane Wilma claims on policies it issued with replacement cost coverage unless and until the insured actually replaced the property.
The lawsuit alleges that this is in violation of Florida law, specifically Florida Statute 627.7011(3) which was passed prior to Hurricane Wilma. This law requires insurers to pay their policyholders on policies issued with replacement cost coverage, the replacement cost, irrespective of whether the policyholder actually replaced the property.
The lawsuit alleges that The Hartford saved millions of dollars in claim payments by failing to comply with this statute. The Hartford was given an opportunity to pay replacement cost coverage to the named plaintiff's but refused to do so.