GRETNA – A pair of homeowners are suing their flood insurer and insurance agent for allegedly providing them with a false insurance quote causing them to buy a home they would not have bought otherwise.
Dale Daughtry McCausland and David P. Daughtry Sr. filed suit against Eric C. Vocke, Capstone Insurance LLC and AB Insurance Company in the 24th Judicial District Court on Dec. 8.
McCausland and Daughtry allege that they entered into negotiations to buy a home located at 54485 Hwy. 433 in Slidell that included an application for a flood insurance policy through Vocke as an insurance agent for Capstone Insurance.
The plaintiffs contend that Vocke provided their realtor with a quote covering a total of $260,000 in total damage to the property and for a cost of $711, mentioning the property was subject to grandfathering and would not be subject to higher flood rates.
However, McCausland and Daughtry assert that after they purchased the home Vocke and Capstone Insurance informed them that there were problems with the zoning of the house. The flood insurance was revised to cover only $12,400 in total damage, in comparison to the previously quoted $260,000, but the price of the premium would stay the same at $711 per year.
Also, the plaintiffs claim their mortgage backer notified them the newly formulated insurance quote was unacceptable and if they did not purchase a better policy at a cost of $1,706 annually they would purchase the policy for them and bundle the cost into their mortgage payment.
The defendant is accused of failing to properly supervise, failing to adequately and timely investigate flood insurance policy prior to providing a quote, failing to use due diligence, failing to maintain standards of a licensed insurance agent, presenting a deficient flood insurance policy and failing to obtain multiple insurance quotes.
An unspecified amount in damages is sought for costs to bring the building up to code, costs of future increase in flood insurance premiums, mental anguish, loss of intellectual enjoyment of the residence and property and loss of value of property.
McCausland and Daughtry are represented by attorney Raymond C. Burkart Jr. of Covington.
The case has been assigned to Division M Judge Henry G. Sullivan Jr.
Case no. 744-909.
Homeowners sue insurer, agent after purchasing home based on faulty flood insurance quote
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