A class-action suit has been filed against Hartford Insurance Company of the Midwest over its refusal to pay replacement cost coverage on Hurricane Wilma claims until the policyholder replaces the property.

The suit, filed in Broward County (Fla.) Circuit Court, alleges that The Hartford is refusing to pay the claims in violation of Florida law, which requires insurers to pay their policyholders the replacement cost on policies issued with replacement cost coverage regardless of whether the property is ever replaced, according to Steven R. Simon, a Miami lawyer who filed the claim.

Hurricane Wilma, which hit Florida Oct. 24, 2005, was responsible for at least 63 deaths and more than $29 billion in U.S. damage claims. It hit Florida less than a month after Hurricanes Katrina and Rita hit U.S. coastal areas, causing widespread damage, and losses of life and property.

The law was passed by the Florida General Assembly prior to Hurricane Wilma, Simon said.

The civil suit alleges that The Hartford saved millions of dollars in claim payments by failing to comply with the law, Simon said in a statement.
When confronted with the possibility of a legal challenge, The Hartford continued to refuse to pay the claims, according to Simon.

“We were surprised by The Hartford’s refusal to pay the claims based on replacement cost coverage as required by the statute,” Simon said. “We felt this was wrong and filed the class action to protect Hartford’s insureds who may not have knowledge that they are entitled to payment based on replacement cost coverage without having to first replace the damaged or destroyed property.”