Woman, insurer settle case

She will receive $1.16M over Wynne tornado damage

A Cross County woman whose home was destroyed by an EF3 tornado packing winds of 150 mph that swept through Wynne on March 31 has settled a lawsuit with her insurer for more than $1 million after she accused the company of offering her more than $200,000 less than her home was insured for following the storm.

Martha White’s Wynne home, which sat directly in the path of the tornado, was destroyed, as were her belongings such as furniture, clothing and a vehicle by the tornado that swept through the town of 8,300 people, killing four and injuring 26 as it cut a 1,600-yard-wide path through the town.

White’s attorney, Austin Easley of Wynne, said that since the day of the storm, White “has essentially been homeless. She lost everything.”

Inspections of the home by the Arkansas Department of Emergency Management and the Wynne Fire Department in the aftermath of the storm determined the structure to be a total loss, the complaint said, as did a claims adjuster for Allstate Vehicle and Property Insurance Co., the company that insured White’s home.

According to the complaint, White’s home was insured for $641,525 but she was only offered $425,091.78 for her loss.

On Wednesday, a joint motion to dismiss the complaint with prejudice was filed in federal court, indicating that a settlement agreement had been reached. The following day, U.S. District Judge Kristine G. Baker dismissed the lawsuit.

On Thursday, Easley confirmed the agreement, saying the lawsuit was settled for $1.16 million. He said the settlement includes about $732,000 to cover the loss of White’s home plus 12% statutory penalty, $211,000 for her furnishings, personal property and other belongings lost in the storm and about $218,000 in attorney fees.

Allstate’s initial offer to White appeared to be in conflict with Arkansas’ valued policy law, passed in 2017, which requires insurance companies to pay the full amount stated in the property insurance policy or the full amount upon which the company charges, collects, or re

ceives a premium in the event of a total loss. Arkansas is one of 20 states that have valued policy statutes in place.

A valued policy differs from what is known as an unvalued, or open, insurance policy, in which the value of the property is required to be proven following a loss through evidence such as invoices, repair estimates, documentation by claims adjusters or through other evidence to establish the value of the loss.

Easley said dealing with such a devastating loss is difficult in the best of circumstances but said the problem is compounded when an insurance provider balks at fulfilling its obligation.

A typical homeowner’s policy, he said, contains several types of coverage, including separate coverage for the dwelling itself, for the contents, for the loss of use of the property, for debris removal, to name a few. It’s important, he said, to know specifically what coverages are included, especially for people who are questioning their insurance settlements and whose finances are strained to the breaking point already due to being displaced from their homes.

“Suffering a loss and to then be dealt with unfairly by your insurance company is hard,” Easley said. “It takes a toll emotionally. She’s not entitled to recover for emotional damage in a situation like that but it’s still hard emotionally. It compounds the problem when you’re not dealt with fairly by your insurance company.”

He said the relatively quick resolution to the matter has allowed White to begin putting her life back in order.

“I think [Allstate] recognized they made some mistakes and wanted to remedy that,” Easley said. “It’s especially good for my client. She’s been basically homeless but she’s been able to get into a house, get a vehicle purchased and kind of move on with her life. She lost everything so she’s able to begin rebuilding her life, so to speak.”

Shane Strabala, an attorney with the law firm of Munson, Rowlett, Moore & Boone, which represented Allstate in the matter, said he was not authorized to comment on litigation.

Easley said he has filed two more lawsuits against insurance companies in the wake of the March 31 tornado, one in federal court and one in Cross County Circuit Court. On May 25, Easley filed a lawsuit in federal court on behalf of Mallory Morrow of Wynne against USAA Casualty Insurance Co. seeking $579,000 plus attorney fees and statutory penalties. Morrow’s home, which sat about 250 yards from the tornadoes path, the complaint said, was destroyed by flooding and tree damage.

On June 5, in Cross County Circuit Court, Easley filed a complaint seeking $10,000 plus attorney fees and statutory penalties from United Home Insurance Co. on behalf of Alexander Shelton of Wynne for roof damage his home suffered in the storm.

“Suffering a loss and to then be dealt with unfairly by your insurance company is hard. It takes a toll emotionally. She’s not entitled to recover for emotional damage in a situation like that but it’s still hard emotionally.”

— Austin Easley, Martha White’s attorney