Lloyd’s of London Reverses Course, Will Pay Kīlauea Victims

Big Island Now

A week after losing a motion to dismiss in Hawaiian state court, Lloyd’s of London has abruptly reversed all denials of claims for victims of the Kīlauea Volcano eruption that began on May 3, 2018. Lloyd’s has agreed to pay policy limits plus 10% interest to policyholders who were previously denied coverage by Lloyd’s, a payout estimated to be in tens of millions.

After the volcano eruption, Lloyd’s denied all claims made by homeowners whose homes were destroyed and personal belongings lost due to fire or other cause.

“I couldn’t be happier for our clients and all of the people in Pāhoa who lost so much since the eruption of Kīlauea,” said Jeffrey Foster who represented several dozen victims of Lloyd’s alleged deceptive practices and bad faith claims. “We applaud Lloyd’s for taking a step in the right direction.

Homeowners who lost everything in the Kilauea eruption will be covered by insurance after all

Hawaii News Now

HONOLULU (HawaiiNewsNow) – Families who lost their home in the Kilauea eruption were angered to learn their insurance company wouldn’t cover the damages brought on by the lava.

A legal battle ensued and several months later, the insurance company appears to have changed its stance.

Lunel and Philip Haysmer paid $2,700 a year in premiums to Lloyds of London. When their home burned in early May at the height of the Kilauea eruption, they filed a claim with the insurance company.

In July, the company denied the claim saying that the fine print in the Haysmer’s policy specifically excluded all “direct or indirect” damages from lava.

The couple filed a lawsuit suing the company for failing to honor damage claims.

But a day before Thanksgiving, the couple learned Lloyds of London altered their decision to deny the the claims of the Haysmers, and other homeowners in similar situations.

“It couldn’t have been any better happening the day before Thanksgiving. It actually put us both into tears for a while. It has been such a stressful period not knowing whether you’d go the rest of your life on a very meager income or if we would have that money to rely on at some point,” Philip Haysmer said.