NEW ORLEANS – A Louisiana man, in a federal court filing last month, claims his insurance carrier breached its own policy by failing to pay for his flood damages.
Plaintiff Cameron Eaton filed his lawsuit January 26 against Gulf States Insurance Company in the U.S. District Court for the Eastern District of Louisiana.
According to the six-page filing, Gulf States is a write-your-own, or WYO, insurance carrier participating in the National Flood Insurance Program.
“Despite notice of the full scope of flood-related damages and supporting documentation, Defendants failed and refused to pay all amounts owed under the Policy,” the complaint states.
On Sept. 11, 2024, Eaton’s home was flooded, causing damage to its foundation, piers and footings, subflooring, insulation, interior walls, flooring, and other structural components.
The property, he claims, was insured under a Standard Flood Insurance Policy issued by Gulf States. All premiums due under the policy had been timely paid, he notes.
“Prior to the flood event, Plaintiff had obtained structural surveys and condition assessments documenting the condition of the Property, which did not identify any significant change in relative elevations or ongoing structural failure,” the lawsuit states.
“Following the flood, Plaintiff observed and documented new and worsening conditions that did not exist prior to the loss, including rotated and displaced piers, erosion and soil loss beneath the structure, loss of underfloor spray foam insulation, uneven and damaged flooring, water intrusion into interior walls adjoining the garage, visible mold growth, and recurring flooding within the garage during rain events.”
Eaton claims he timely reported the flood loss to his insurance carrier and “fully cooperated” with its investigation.
In a letter dated Feb. 18, 2025, Gulf States issued a partial payment for $1,279.26 for building damages. It denied coverage for “significant” portions of Eaton’s claimed flood damage, asserting floor insulation and subflooring were either ineligible for coverage or that flood damage could not be confirmed.
The insurer also denied coverage for interior wall and floor damage despite evidence that flood waters reached and exceeded the floor line of the property, the filing states.
Eaton contends he obtained contractor inspections confirming that “substantial” repairs were necessary as a direct result of flood-related erosion, foundation movement, and loss of structural support. He also obtained a proposal totaling about $53,200 for foundation and pier repairs.
“Plaintiff submitted a timely and sworn Proof of Loss in compliance with the requirements of the Policy for the flood damages claimed,” the complaint states.
Eaton argues Gulf States breached its policy by failing to conduct a reasonable and complete investigation; improperly limiting coverage; failing to include all covered flood damages; failing to pay for direct, physical loss caused by floodwaters; and failing to pay the full amount owed under the policy.
He seeks the costs to repair or replace flood-damaged structural and foundation components; repair or replacement of flood-damaged interior walls, flooring, subflooring, and insulation; remediation; debris removal; repair or replacement of flood-damaged personal property; pre-judgment and post-judgment interest; and court costs.
The Chopin Law Firm LLC in New Orleans is representing Eaton in the suit.
