By Big Island Now
A week after losing a motion to dismiss in Hawaiian state court, Lloyd’s of London has abruptly reversed all denials of claims for victims of the Kīlauea Volcano eruption that began on May 3, 2018. Lloyd’s has agreed to pay policy limits plus 10% interest to policyholders who were previously denied coverage by Lloyd’s, a payout estimated to be in tens of millions.
After the volcano eruption, Lloyd’s denied all claims made by homeowners whose homes were destroyed and personal belongings lost due to fire or other cause.
“I couldn’t be happier for our clients and all of the people in Pāhoa who lost so much since the eruption of Kīlauea,” said Jeffrey Foster who represented several dozen victims of Lloyd’s alleged deceptive practices and bad faith claims. “We applaud Lloyd’s for taking a step in the right direction. However, it is important to note that the decision by Lloyd’s to set aside the unenforceable and illegal ‘lava exclusion’ cannot remedy the bad faith and deceptive practices claims against Lloyd’s of London and its agents. We look forward to continuing with lawsuits on behalf of our clients and others seeking to hold Lloyd’s legally accountable for the manner in which policyholders were treated after losing everything in one of the most catastrophic property losses here in Hawai‘i”