Insurer denies claim submitted by elderly couple displaced by lava

PUNA, BIG ISLAND (HawaiiNewsNow) - Lloyd's of London, a national insurer, has officially denied a claim submitted by an elderly couple who is now living in a friend's garage.

The denial came via fax just days after the Leilani Estates residents sued for failing to give them lava damages — despite paying $2,700 a year in premiums.

Philip and Lunel Haysmer's home burned down in early May when lava first entered into the Puna subdivision. According to their suit, the insurer, a syndication group led by Lloyd's of London, has failed to honor their damage claims.

Their lawyer, Jeffrey Foster, said the couple is among a dozen homeowners whose claims are being denied.

The state insurance commissioner says Lloyds of London is not licensed in the state of Hawaii so the state has limited jurisdiction.