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An Attorney from Newnan, Gorgia has filed a federal lawsuit against an insurance company based in Michigan. This is due to the Michigan-based company’s failure to financially compensate policy holders after the tornado that occurred in March of 2021. The complaint that was filed by Drake Taylor alleges that Auto-Owners Insurance Company in Lansing, Michigan, did not pay diminution of fair market value for two different properties owned by Mr. Taylor. The properties were are located on LaGrange Street and Boone Drive.
Mr. Taylor has stated that the company has compensated him for the damages sustained to his properties due to the tornado in March, but the company did not compensate him for the diminution of fair market value on either of his properties. Georgia residents may collect post repair diminution as part of their property damage claim. Mr. Taylor argues that Auto-Owners Insurance Company tried to include a diminution of value exclusion into both of the policies.
In the State of Georgia, if any existing policy is renewed, it may not reduce coverage. If the policy includes a reduction to coverage, a policy termination must be filed and a new policy must be created. This law also states that any reduction of coverage must be notified via mail thirty days before any reductions are made to a policy. Mr. Taylor claims the company never sent any notification regarding a change to policy but Auto-Owners Insurance did attempt to reduce coverage while increasing premiums on both of his properties properties. Mr. Taylor is seeking full diminution of value for the properties. Totaling at $43,000 along with punitive damages and attorney fees.