Texas Couple Files Suit Saying Insurance Company Stiffed Them On Claim For Flood Damage Caused By "Ike" Storm Surge

In Beaumont, Texas, The Southeast Texas Record reports:

• When their property in Bridge City was flooded by Hurricane Ike's storm surge on Sept. 13, 2008, Milton and Mary Perio believed the flood insurance they had purchased just a month before would cover their damage claim. However, the insurance company denied their claim stating that the flood insurance was not in effect on the date of the loss.

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• According to the complaint, the Perios claim that when they paid for the flood policy on Aug. 27, 2008, an employee of the insurance company told them the flood insurance "would in fact take full force and effect immediately upon the closing of the property."

• However, National Lloyds told them the flood insurance policy did not go into effect on the date of closing, Aug. 29, 2008, because it was not purchased while "making, increasing, extension or renewal of a loan, as required by the federal statutes, to allow the flood coverage be effective as of the date of closing." Claims against Lloyds include violations of the Texas Deceptive Trade Practices Act, fraud and negligent misrepresentation.

For the story, see Flood insurance did not cover flooded home, Bridge City couple's lawsuit claims.

(1) Possibly in an attempt to make the litigation more costly for the homeowners, and/or possibly in an attempt to shop for a friendlier litigation forum, the insurance company reportedly had the case, initially filed in state court, removed to a Beaumont, Texas Federal court.