Trent Lott sues insurance company over loss of Pascagoula home

Sun Herald ^ | 12-12-5 | ANITA LEE

[WKB]

GULFPORT - U.S. Sen. Trent Lott and wife Tricia are suing State Farm Fire and Casualty Co. over its refusal to cover the loss of their Pascagoula home to Hurricane Katrina.

The Lotts' suit, filed today in U.S. District Court, accuses the insurance company of fraud for denying coverage based on a "flood" exemption and asks that the court order the claim paid. It further asks that the insurance company be prohibited from using the flood exemption to deny coverage.

Attorney Richard "Dickie" Scruggs is representing his sister and brother-in-law in the lawsuit.

The Lotts paid insurance premiums for more than 40 years, according to the lawsuit, believing they would be covered for all losses caused by a hurricane. Katrina left a slab where their waterfront home once stood.

Homeowner's insurance policies in Mississippi and other states cover wind damage but typically include language to exclude flood damage, whether or not it is caused by wind-driven water.

The lawsuit argues that the storm surge was part of the hurricane and can't be considered flooding. It also points out that, under established law in Mississippi, when wind is considered to the "proximate" cause of damage, a claim should be paid even if other factors contributed to the loss.

[poobear]

It happened by the thousands last year in Florida. He should have had flood insurance living on the water. The same reasoning was given to tens of thousands of Florida residents. Why can't the same rules apply to ol' Trent? He certainly could afford it.

[Abathar]

He opted for the cheaper insurance knowing that there was other more expensive policies that covered flood damage out there.
Heck I know that and I live in Indiana!

[jch10]

We live on the water and wouldn't think of NOT having flood insurance. Wonder why Trent didn't?

[Neville72]

I've heard that Dickie Scruggs was John Grisham's model for his book KING OF TORTS. Anybody know if that's true? Scruggs, I believe, was one of the lead plaintiff attorneys in the huge tobacco cases and made MEGA-MEGA BUCKS.

[SuziQ]

If he wins, there's hope for my sister and her husband. Same thing happened to their home in Ocean Springs. They had a concrete block house on a concrete slab, and after the 35' storm surge hit it, all that was left was 20" of sand on the slab. They found a piece of a wall in the lot next door, and another 1/2 mile away on St. Andrews Golf Course. I don't think she's found any more of it. She's been digging in the sand, and walking the road, since a week after the hurricane, and has found a few of her things. The thing she was most pleased to find was the quilt she had made, with our siblings contributions of fabric squares, for our Mama's 75th birthday. It is stained now, and has a tiny tear, but otherwise, is fine.

[gridlock]

I pay flood insurance because a corner of my property is within the 100-Year-Line. I pay the same rate as some yahoo who builds his entire home 2 feet above sea level in a hurricane zone.

Fact is, the Federal Flood Insurance Program was a huge subsidy to folks living on the Gulf Coast. They were protected from entirely predictable losses at rates far less than any market or risk based insurance company could affort to offer. Homeowners like me have been required by our mortgage companies to foot the bill for these guys and rebuild mansions in Florida, because everybody pays the same.

But Trent Lott did not want to take the gift. He was offered heavily subsidized insurance, but instead chose to put the premium money in his own pocket instead. Dumb move, Trent. You gamed the system one step to far, and now you are left holding the bag.

[bessay]

The federal government REQUIRES me to carry flood insurance in Florida to cover my mortgage. The fact that he didn't have flood insurance means he owns the home outright and didn't want to pay the less than $100.00 per month for flood insurance. He lives in a tidal zone in Mississippi. He should not be relying on lawyers to save his cheap butt.

[kabar]

Welcome Senator to the real world.

[Tax-chick]

ZOT, Trent. Should have shelled out for the flood insurance. Laws are for other people, right?

[eastforker]

Seems to me that if all he had left was a slab it could be argued that it was wind damage that destroyed the home. The fact that water was also present would seem to be irrelevant. What caused the house to be destroyed, wind or water.

[chronic_loser]

Trent Lott is a typical idiot, who thinks that "the fact that he paid insurance premiums for years" automatically invalidates a CONTRACT which clearly eliminates tidal surge/flood. State Farm sent him a policy EVERY YEAR, and the fact that he was too lazy to read it does not establish fault on the part of State Farm. Furthermore, if he was a sophisticated property owner, he had to have talked to people and know that flood was excluded. I don't write much insurance at the beach here in NC, but you had better believe that EVERY propertyowner knows that flood is excluded. They all ask me, they all price it, and most of them decline unless the bank demands it.

I make them sign a declination on flood insurance if they are within 3 miles of the beach because I don't want them wailing and playing the victim when their house is washed away by tidal surge and they start playing the same kind of irresponsible games that Lott is now playing. Lott is just playing power games like any scumbag politician.

[2nd Bn, 11th Mar]

"It happened by the thousands last year in Florida. He should have had flood insurance living on the water. The same reasoning was given to tens of thousands of Florida residents. Why can't the same rules apply to ol' Trent? He certainly could afford it."

Should read..."the lobbyists could afford it."

[Jemian]

Storm surge is part of the hurricane system. If the hurricane had not been there, the storm surge would not have happened. STORM surge, not tidal wave, not a dam breaking, not a river overflowing its banks. It was part and parcel of the hurricane. The insurance company was wrong earlier, it was wrong in the other parts of the states and it is wrong now in Mississippi. If Oklahoma had a hurricane with the storm surge associated with it, the home owners have a right after paying the premiums for years should be covered. I don't see how a storm surge can be separated from the hurricane. It is part of the system.

[Old Student]

"What bums. This guy pays the pemiums for years and dumped on."

Lott is the bum. No insurance policy in the country protects from flooding. Says so in his policy, which he should have read 40 years ago, and every year since! If you live in a flood zone, you must by federally-subsidized flood insurance. Which you can get through State Farm, btw.

[stopem]

Certainly he would have known there is flood protection because he was in a flood plain? And I would imagine he could afford private flood protection.

I mean he does work in and around the federal government ;)

[gridlock]

Unfortunately, Trent is right in his assumption that a MS jury will side with the local boy and choose to soak the other 49 states, no matter what the policy says. They've been gaming the system for so long down there, it is second nature. He'll get his fat cat lawyer, he'll sue and he'll win.

And folks like you and me will see our insurance rates double, because we have to pay for some moron to re-build his mansion in Mississippi below sea level. And we'll keep paying until that mansion is washed away again, and our insurance rates will double again.

[mcg2000]

Lott

[HereInTheHeartland]

If Trent wanted flood insurance then he should have purchased it.
He is acting like the typical "I don't care what the contract says, I want to have my butt covered" weasel.

[zipp_city]

I would like to live somewhere with an ocean view but I know I can't afford it, so why should I be charged extra premium just because those who do enjoy the view and can afford to pay but refuse to pay the premium.

[gbaker]

<> And surprise surprise Dickie and Trentie are related by marriage. Probably only John could say for sure to your question. Also Dickie was extremely rich prior to the tobacco lawsuit due to asbestos class action suits. Dickie is nothing but idolized trash and Trent continues to disappoint. Oh and I beleive Dickie intends to have a hurricane Katrina related class action suit.