Lloyd’s of London agrees to pay lava victims, attorney says
News Source: West Hawaii Today
HILO — Lloyd’s of London has agreed to pay policyholders whose claims were previously denied following the Kilauea eruption, particularly those affected by the controversial “lava exclusion” language in their policies. Kona attorney Jeff Foster, who is representing the policyholders, stated that the payments will be made to those who experienced a total loss, affecting dozens of policyholders and totaling “tens of millions” of dollars. Foster described this development as fantastic news for the people of Puna.
The decision to pay the claims comes after Lloyd’s lost a motion to dismiss the case in Hilo Circuit Court. Foster indicated that while payments for the denied claims are being addressed, compensation for bad faith and deceptive practices will still be pursued.
Foster initially filed the lawsuit on behalf of Philip and Lanell Haysmer, who lost their home in Leilani Estates due to the eruption. Their claim was denied based on the “lava exclusion” in their policy, despite the home being destroyed by fire caused by the eruption. Foster mentioned that he has payments ready for about a dozen clients, pending assurance from Lloyd’s attorneys that the payments will not affect his clients’ claims.
The Kilauea eruption, which began on May 3 on Kilauea’s lower East Rift Zone, resulted in the destruction of more than 700 homes. The lava flow ceased in early September, with the last sighting inside fissure 8. This development marks a significant step forward for impacted homeowners in Puna, offering hope for those previously denied coverage due to the eruption.
