Erie Insurance sued over fire damage claim

By Andrea Dearden | Jan 8, 2014

The owner of a house in Highland says her insurance company refused to pay an adequate amount to repair fire damage.

Lafain "Vicky" Matthews filed a lawsuit Dec. 20 in Madison County Circuit Court against Erie Insurance Exchange and Erie Insurance Property & Casualty Company.

Matthews says she built a house on the 200 block of Keeven Drive and obtained an insurance policy for the home from Erie Insurance in November 2012. She claims the policy she paid for was called Ultra Cover Home Protector Insurance Policy. Matthews alleges the company did not disclose with its policy that it would set a maximum amount it would pay for replacement costs.

In December 2012, the house was allegedly destroyed by a fire and Matthews says she notified Erie Insurance. She claims the company failed to properly investigate the loss, tried to coerce her to use a contractor chosen by Erie Insurance and established an unreasonably low amount it would pay for replacement. Matthews alleges she paid for the damages herself but Erie Insurance refuses to pay the difference between their estimate and what Matthews actually paid.

Matthews accuses the defendants of breach of contract, consumer fraud, vexatious conduct and anticipatory repudiation. She asks for a judgement of more than $300,000 in damages and court costs.

Attorney Thomas A Hill of Highland represents Matthews.

Madison County Circuit Court Case No. 13-L-2169


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