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Nationwide Mutual admits underpayment to insureds for 13 years

On June 16, the Columbus Dispatch reported that Nationwide Mutual Insurance had agreed to pay policyholders an additional 20 percent on top of previous payments to settle a class action alleging systematic underpayment of home repair claims.  The paper explained that over a 13 year period, Nationwide had underpaid insureds by withholding payment for general contractors' overhead and profit, leaving insureds inadequate insurance coverage to complete insured repairs.  A spokeswoman for Nationwide denied wrongdoing and refused to discuss the case, pending court approval of the class-action settlement.

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