Homesite Insurance Midwest Payouts for Mold Remediation Pennsylvania Class Action

Property insurance policies can cover many risks, which may include fire, flood, wind damage, and termite damage, among other things. This class action brings suit against Homesite Insurance Company of the Midwest for damage to a home under one of its insurance policies. The complaint alleges that Homesite is improperly withholding its payout for mold remediation until the remediation work is completed.

The class for this action is all former or current Pennsylvania property owners, whether they are persons or entities, who bought or maintained insurance for a home, condominium, landlord, business, commercial property, or other property, between December 3, 2015 and the present, where the property was insured under a policy issued by Homesite or any of its subsidiaries or other entities; who put in a claim for mold damage as the result of a covered loss; and who were denied coverage for the damage or whose coverage was delayed, in whole or in part, until after the costs of the repairs were incurred by the policy holder.

Homesite issued to an insurance policy to the plaintiff in this case, Rose Marie Passalacqua, covering her property. It included an endorsement for “Limited Fungi, Wet or Dry Rot, or Bacteria Coverage.” The coverage was for up to $10,000 of mold damage.

The complaint alleges, “The Policy does not include a ‘paid when incurred’ provision, or any such language which allows for Homesite to withhold paying benefits for a covered loss until after the policy holder has incurred the cost of restoring the property to its pre-loss condition.”

Passalacqua suffered direct physical loss to her property on January 29, 2020, resulting in water and mold damage. The preliminary estimates of loss were attached to the complaint when it was filed as Exhibit A. The costs of mold remediation were not included in this estimate.

These costs were later estimated by Serve Pro. This estimate was attached to the complaint as Exhibit B. The complaint asserts, “Notice of this covered loss was given to Homesite in a prompt and timely manner…” It also claims that Passalacqua complied with all terms and conditions required under the policy.

Homesite has refused to pay for the mold remediation. In a later phone call, the complaint claims, a Homesite representative said “that Homesite always took the position that mold remediation costs were only paid and owed after the work was completed and the cost was incurred. However, the complaint alleges that Homesite has not indicated any policy language to support that position.

The counts include violation of state unfair trade practices and consumer protection laws, breach of contract and of good faith and fair dealing, and bad faith.

Article Type: Lawsuit
Topic: Insurance

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