Barry Fleishman, head of Shapiro Lifschitz & Schram’s Insurance Coverage Litigation practice, was recently quoted in a Law360 article discussing insurance issues likely to arise between policyholders and insurance companies as a result of the destruction caused by Hurricane Harvey.
The article specifically looked at five questions that may lead to clashes between policyholders and insurers in the hurricane's aftermath. Barry addressed the question of “How precise do claims have to be?”
According to Barry, “I would argue that the intent of the law is to eliminate fraud. The aim of the law is not to reduce the amount of legitimate coverage that should be given to a policyholder that has been paying premiums. 'Reasonable' depends on the circumstances at the time you are giving the estimate. Anyone in this business knows that it is difficult to estimate the loss at the beginning of the claim period. It takes investigation and review to come out and estimate that total loss. I would imagine that courts and juries will be relatively lenient."
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