EDWARDSVILLE - An insurance company is facing a class action, alleging it utilizes a depreciation methodology rather than a fair market methodology when calculating claims.
Gentes Trust #1 and Gentes Trust #2 filed a class action lawsuit in the Madison County Circuit Court against Frontier-Mt. Carroll Mutual Insurance, alleging breach of contract, declaratory judgment and relief and statutory penalty for improper claims practices pursuant to 215 ILCS.
According to the lawsuit, the Gentes Trusts contracted with Frontier for insurance policies providing coverage for certain losses to a farmstead. On July 11, 2020, the farmstead suffered wind and hail damage in a storm. The plaintiffs claim the farmstead roof was torn off and damage was done to the siding, ceiling, walls and other items during the storm. The plaintiffs claim they submitted property damage claims to Frontier and were visited by an adjuster after the incident. Frontier's adjuster determined the insured farmstead sustained a loss with a replacement cost of $122,490.69
In October 2021, the Plaintiffs received a net actual cash value payment from Frontier for $51,223.16 and $14,260.88. Frontier does not interpret its policy to require a fair market value methodology to determine the actual cash value of a loss. In adjusting the plaintiffs' claims, Frontier affirmatively and unilaterally chose to use a replacement cost less depreciation methodology to calculate the loss.
The plaintiffs claim the estimate upon which their payments were received was based on a depreciated amount from certain categories of damaged properties. They allege Frontier, therefore, violated and breached it's contract.
The plaintiffs seek a declaratory judgment; preliminary and permanent injunction and equitable relief against the defendant; an order requiring the defendant to perform and carry out policies, practices and programs that remediate and eradicate the effects of its past and present practices; an award for damages; court costs and attorney fees. The Gentes Trusts are represented by Christopher W. Byron of Byron Carlson Petri & Kalb LLC in Edwardsville.
Madison County Circuit Court case number 22-LA-000269