EDWARDSVILLE — An insurance policy holder filed a class action against an insurance carrier she alleges is illegally underpaying for claims by miscalculating depreciation values.
Pauline Willis, individually and on behalf of others similarly situated, filed a complaint Jan. 15 in the Madison County Circuit Court against AmGuard Insurance Company, alleging breach of contract.
According to the suit, Willis purchased an insurance policy from AmGuard for her residence on Warren Avenue in East St. Louis, which was in effect from Oct. 31, 2019, through Oct. 31, 2020. She alleges her residence "suffered damage covered by the policy" on April 27, 2020.
Willis alleges that AmGuard's adjuster determined her "covered loss" to be $97, 209.48, and that AmGuard subtracted $27,558.37 from the replacement cost value (RCV) for depreciation, which resulted in a $69,651.11 actual cash value (ACV) on the claim.
Willis alleges she was underpaid for her claim and that the insurer falsely withheld materials and labor costs as depreciation "even though labor does not depreciate in value over time." She claims that while AmGuard may "lawfully depreciate material" in calculating the claim, they can't legally "withhold repair labor as depreciation" under the policy.
Willis seeks monetary and all other proper relief. She is represented by Christopher Byron and Christopher Petri of Byron Carlson Petri & Kalb LLC in Edwardsville and David Butsch and Christopher Roberts of Butsch Roberts & Associates LLC in Clayton.
Madison County Circuit Court case number 21-L-000054