Including a homeowner who was awarded hundreds of thousands by HPIA on one house and less than $9k by Lloyd’s on the house he owned right next door.
HILO, HAWAII—Leilani Estates homeowner and life-long Hawaii resident, Howard Konanui is one of 11 Lloyd’s of London policyholders who joined dozens of others in lawsuits against Lloyd’s and its affiliates. In this latest Lloyd’s lawsuit, the plaintiffs’ homes have experienced delays, denials and unprecedented dismissiveness in connection with claims filed on homes that have sustained catastrophic damage following the Kilauea eruption.
Mr. Konanui owned two homes located right next to each other in Leilani Estates. Both homes sustained significant damage. One home was insured by the Hawaii Property Insurance Association, commonly known as HPIA. The other home was insured by a Lloyd’s of London and an affiliate called Worldwide Facilities.
Shortly after making his claim with HPIA, the state insurance carrier determined that the damage to his home was so significant that HPIA declared the home a total loss. Based on the total loss determination, HPIA tendered hundreds of thousands of dollars in policy limits to Mr. Konanui.
Mr. Konanui’s experience with Lloyd’s of London was much different. Even though his two homes were located right next to each other and that the homes sustained nearly identical damage, Lloyd’s of London offered Mr. Konanui a mere $8,880.89 as full settlement of his claims. In an effort to save hundreds of thousands of dollars owed to Mr. Konanui, Lloyd’s refused to declare this second home a total loss. In addition to paying a hefty $2,034.24 premium to Lloyds, Mr. Konanui was forced to spend months of his own time corresponding with Lloyd’s claims adjuster, John Mullen & Co.
He was even forced to hire his own contractors to inspect and draft damage assessments that were provided to John Mullen & Co. Despite his best efforts, Lloyd’s refused to declare the home a total loss and refused to revise its offer. As a result, Mr. Konanui had no choice other than to turn to Big Island attorney, Jeffrey E. Foster and join the dozens of other Puna homeowners in filing a lawsuit against Lloyd’s of London.
Mr. Konanui, along with ten other Lloyd’s policyholders, are the latest group of Puna homeowners to file a lawsuit against Lloyd’s of London and its affiliates for breach of contract, bad faith, conspiracy and deceptive practices. Not only have these homeowners been offered pennies on the dollar for their claims, but they have been forced to wait months just to receive the bad news and spend countless hours emailing claims adjusters to explain the extensive damage sustained by their homes.
The new 138-page complaint was filed by Foster, who represents over 50 clients in claims against Lloyd’s of London and their affiliates.
“Mr. Konanui’s situation offers a unique insight into Lloyd’s claims handling practices. He had two homes located right next to each other with different insurance carriers. The fact that HPIA paid Mr. Konanui policy limits of hundreds of thousands of dollars in a prompt and efficient manner stands in stark contrast to the month’s long struggle Mr. Konanui was forced to endure only to receive news that he would be offered a mere $8,000 by Lloyd’s of London. It is this type of treatment that has left those insured by Lloyd’s of London with no option other than to look to the courts for help,” Foster stated.
Click To View: Berry v. Lloyd’s, et.al., Civil No. 19-1-020- Master Administrative Complaint