What Are The Best “Next Steps” For Policyholders Affected By Hurricanes Katrina And Rita?
While litigation is generally not the preferred pathway to maximizing an insurance recovery, it is an important potential tool and — for many policyholders — it may be the only avenue to a successful insurance recovery. The importance of preserving the litigation option dictates that all policyholders undertake a careful analysis of the relevant timing issues, so that they can minimize (or eliminate) the possibility of losing claims because they are not timely filed. Such an analysis will require a thorough evaluation of the applicable policy language, potential causes of action, and the potentially applicable law. For example, as discussed above, while some claims may be subject to one-year contractual or statutory suit deadlines, it may or may not be possible to extend one-year suit deadlines for all potential claims pursuant to a tolling agreement, depending on the applicable law. And policyholders subject to Louisiana law might reasonably conclude that recently enacted legislation
