USAA Hit With Suit Over Home Insurance Coverage Boost

Law360, New York (March 29, 2013, 7:50 PM EDT) -- USAA Casualty Insurance Co. was hit with a proposed class action in Florida federal court Friday alleging it unilaterally raised law and ordinance coverage in homeowners' policies without their consent, automatically triggering higher premiums in breach of their contracts.

Florida couple James R. Allen and Diane Z. Allen claimed USAA Casualty unilaterally raised the law and ordinance coverage — which covers the cost of rebuilding a damaged structure so that it conforms with the latest building codes — in homeowners' policies from no coverage or 25 percent coverage to 50 percent of the dwelling coverage, regardless of what policyholders originally opted...

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