Nationwide Mutual settles class action over underpaid claims

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A class-action settlement involving homeowners policies written by Nationwide Mutual Insurance Co. and its affiliates could lead to homeowners receiving money for claims submitted over the last 13 years.

scalesbalanceThe settlement is between Nationwide and its affiliates and homeowners policyholders who say they were not paid enough for claims submitted between 1996 and March 20, 2009.

The deadline for homeowners to file a claim form to be included in the settlement is Aug. 26, according to the North Carolina Department of Insurance, which says about 305,000 state residents may be eligible for money.

The suit alleges Nationwide underpaid policyholders by not including general contractors’ overhead and profit when paying certain claims involving damage to a building or other structures. Nationwide maintains that it properly resolved and settled homeowner’s claims, but agreed to settle the suit to avoid the cost and distractions of prolonged litigation.

The Nationwide companies involved include Nationwide Mutual Insurance Co., Nationwide Mutual Fire Insurance Co., AMCO Insurance Co., Allied Property and Casualty Insurance Co., Depositors Insurance Co., National Casualty Co., Nationwide Insurance Co. of America, Nationwide Affinity Insurance Co. of America, Nationwide Property and Casualty Insurance Co., Nationwide Lloyds, Nationwide Insurance Co. of Florida, Nationwide Indemnity Co., Scottsdale Indemnity Co., Scottsdale Surplus Lines Insurance Co. and Scottsdale Insurance Co..

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