HONOLULU (HawaiiNewsNow) –  After a prolonged legal battle, families who lost their homes in the Kilauea eruption have received a positive turn of events regarding their insurance coverage. Initially, many families, including Lunel and Philip Haysmer, were informed by their insurance company, Lloyd’s of London, that damages caused by the lava were not covered under their policies. This led to frustration and uncertainty as families faced the daunting task of rebuilding their lives without the expected insurance support.

The Haysmers, who had been paying $2,700 annually in premiums to Lloyd’s of London, filed a claim after their home burned down in early May during the eruption. However, in July, their claim was denied, citing a policy exclusion for damages from lava, whether direct or indirect. Subsequently, the Haysmers, along with other affected homeowners, took legal action against the insurance company, alleging failure to honor damage claims.

In a significant development, just a day before Thanksgiving, Lloyd’s of London reversed its decision to deny claims for the Kilauea volcano victims, including the Haysmers. The company agreed to pay policy limits plus 10% interest to policyholders, signaling a major victory for the affected families. Attorney Jeffrey Foster, who represented the Haysmers, estimated that the payout would amount to tens of millions of dollars for various homeowners.

Foster emphasized that the payout is not only intended to compensate homeowners fairly but also to serve as a disincentive for Lloyd’s or any other insurer to repeat such actions in the future. While the specific payout amounts were not disclosed, Foster assured that each case would be addressed individually to ensure fair compensation.

The announcement of Lloyd’s reversal brings relief to families like the Haysmers, who have been grappling with uncertainty and stress for the past several months. Despite the positive development, some homeowners whose properties sustained partial damage are still dealing with unsettled claims. Nonetheless, the news marks a significant step towards recovery for families whose lives were forever changed by the eruption of Kilauea.