Allstate Insurance office
EDWARDSVILLE, ILLINOIS - A boat owner in Madison County has launched a class action lawsuit against insurance giant Allstate, accusing the company of allegedly committing consumer fraud by issuing allegedly worthless boat insurance policies in which coverage limits allegedly are equal to customers' deductibles.
On Aug. 15, attorney Peter J. Maag, of the Maag Law Firm, of Wood River, filed the class action in Madison County Circuit Court.
The lawsuit was filed on behalf of named plaintiff Trisha Bell, identified as a resident of Madison County and the owner of two boats. The lawsuit identifies those boats as a 1990 Ozark DB24 and a 1990 Celebrity Bowrider.
According to the lawsuit, Bell insured the boats through Allstate, which offered $5,000 in coverage for "boats and motors."
According to the lawsuit, Bell filed a loss claim for one of the craft, but was denied coverage, as Allstate allegedly told her the deductible under her policy was $5,000.
According to the lawsuit, this parity between coverage limit and deductible rendered the insurance coverage worthless, and meant she was essentially paying Allstate annual premiums for nothing of value in return.
The lawsuit asserts this exchange amounted to consumer fraud.
Allstate allegedly "knew that its representation that its policy had value, with respect to coverage for 'Boats and Motors' when covered property damage for same could never exceed the deductible when both are the same amount, is a false representation of a material fact that was known or believed to be false for purposes of inducing Plaintiff to enter into the policy," the plaintiffs said in the lawsuit.
The lawsuit includes counts under common law fraud and the Illinois Consumer Fraud and Deceptive Business Practices Act.
The plaintiffs are seeking to expand the action to include every Illinois boat owner who purchased similar boat insurance policies through Allstate in the last 3-5 years.
The plaintiffs are seeking unspecified damages of more than $50,000, plus attorney fees.
Allstate did not respond to a request for comment from The Record.
