Two Sisters Win $18 Million After Insurance Company Offers $5,000 for Flooded Home Repair

Two sisters took legal action against their insurer after receiving a mere $5,000 offer to repair their flooded home following a storm. The outcome? A substantial $18 million victory.

Legal Battle and Award

Following extensive flood damage to their residence during a February 2019 rainstorm, the sisters, Jennifer Garnier and Angela Toft, filed a claim with American Reliable, their insurance company. Disappointingly, the insurer proposed a minimal $5,000 for repairs. Subsequently, the sisters pursued legal action, leading to a jury awarding them a remarkable $18 million.

Verdict Details

The jury's decision, delivered by a San Bernardino County Jury on April 18 after a six-week trial, allocated $6 million for pain and suffering and an additional $12 million in punitive damages to Garnier and Toft. The lawsuit highlighted the severe living conditions resulting from the home's damage, emphasizing the destroyed heating system and electrical faults.

Insurance Company Oversight

Despite American Reliable's acknowledgment of an oversight in October 2023 and a subsequent offer of $140,000, the sisters opted to proceed with the trial. The jury ruling favored Garnier and Toft, awarding them $3 million each for emotional damages, $2 million in punitive damages from American Reliable, and $10 million in punitive damages from Global Indemnity, the parent company of American Reliable.

Legal Implications and Industry Trends

The case sheds light on the accountability of insurance companies in providing fair compensation to policyholders. Additionally, it underscores the evolving landscape of insurance practices, with a focus on maximizing profits through algorithmic systems, as highlighted in a previous Business Insider report.

For further insights on industry trends and legal battles, refer to the original article on Business Insider.

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By: jzitser@businessinsider.com (Joshua Zitser)
Title: Two Sisters Win $18 Million After Insurance Company Offers $5,000 for Flooded Home Repair
Sourced From: www.businessinsider.com/sisters-sued-home-insurer-reliable-5k-flood-damages-won-18m-2024-5
Published Date: Mon, 13 May 2024 12:05:35 +0000