Travelers Settles Katrina and Rita Lawsuit

By Sarah Pierce

Here’s some good news for homeowners affected by Hurricane Katrina and/or Rita: If you owned property in Louisiana that was damaged during Hurricanes Katrina or Rita and had an insurance policy through Travelers or one of its affiliates, you could be entitled to more money under a recent class action settlement.

A Louisiana court has preliminarily approved a class action settlement from a lawsuit alleging Travelers insurance and some of its affiliates mishandled claims from Hurricanes Katrina and Rita, causing property owners who had Travelers insurance to receive fewer benefits than they were entitled to under their policy. If given final approval, Travelers will pay a total of $1 million into a settlement fund to reimburse class members.

You are considered a class member if your Louisiana property sustained any loss or damage of any kind arising in any way out of damage, destruction or harm related to Hurricanes Katrina and/or Rita, and if at that time you had any rights under an insurance policy issued by Travelers. You are also included in the settlement class if you are an actual or putative assignee or subrogee or leinholder of an affected policy holder. A list of Travelers companies covered by this class action settlement can be found in the class action settlement notice.

If you fall under any of the categories above, you’re automatically included in the proposed class action settlement. If you wish to remain in the class, you don’t need to do anything, but you will give up your rights to sue Travelers regarding these insurance claims if the class action settlement is approved. If you wish to exclude yourself from the class action settlement, you must submit a written request for exclusion postmarked by September 2, 2010. You will not receive any money from the class action settlement. Those who wish to remain in the settlement but object to it must submit a written objection postmarked by September 27, 2010.

The final hearing is scheduled October 27, 2010. For more information on the Katrina and Rita Travelers Settlement, visit www.katrinainsurancesettlement.com.