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Will Allstate be held accountable for breach of contract?

A  flood that occurred on Christmas 2015 in another state reportedly caused a married couple to sustain substantial losses. The filed a claim with Allstate Insurance Company. The man and woman were upset to learn their claim had been denied and are now suing Allstate for breach of contract. Many Louisiana insurance clients may relate to the situation.

Allstate allegedly sent an adjuster to assess the damage at the couple’s residence. Not only did the company then deny the claim, but the couple says they were told their policy was not properly underwritten. Because of the supposed error, they were not eligible for any applicable coverage.

The couples’ claim states Allstate altered their policy without notifying them or their insured lender. Apparently, the changes that were made reduced their coverage and flood loss protection. They were not aware of any of this, however, until a second flood caused them to suffer even more damages.

At some point, the couple received a check for an amount just shy of $1,000 in the mail. Along with the check, came notification that there had been an overpayment of some sort; they were also informed their policy had expired on its own terms. The couple is suing for breach of contract and negligence. This type of business tort is not uncommon in Louisiana. Anyone believing another party or parties has failed to adhere to a signed written agreement may take up the matter in court by allowing an experienced business and commercial law attorney to aggressively litigate the issue, if the situation warrants it.

Source:, “Couple sues Allstate Insurance for breach of contract“, Kyla Asbury, Jan. 23, 2017