Southern Fidelity accused of failing to pay Gustav claim

Andrea Dearden Aug. 13, 2010, 5:00am


New Orleans property owners are accusing an insurance company of failing to pay claims they filed after Hurricane Gustav.

Louise K. and Charles G. Schaefer filed a lawsuit against Southern Fidelity Insurance Company Aug. 11 in Orleans Parish District Court.

According to the suit, the Schaefers owned two pieces of rental property on Joseph Street in New Orleans in 2008. The couple says the homes were severely damaged when Hurricane Gustav made landfall in September of that year.

At the time of the hurricane, the Schaefers say the residences were covered by a Southern Fidelity Insurance "all risk policy." The couple claims the policy covered all damages, including any caused by hurricanes or high winds. They say the coverage amount was based on the replacement cost of the two homes.

The Schaefers claim they provided all necessary proof of the damage to Southern Fidelity but never received full payment from the insurance company.

They are asking for $50,000 in damages along with court costs.

They are represented by Joseph Bruno of Bruno & Bruno, LLP in New Orleans.

Case No. 10-8242

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