Posted on 12/16/2005 4:33:38 AM PST by 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.
We were there last January when the place looked like a gigantic lake. Fortunately most of the roads through the bottoms are elevated.
Being in FL and knowing how the insurance rules work, if the water came form above, it isn't flooding. If it's rising water, it's flooding. Storm surge, for decades, is classified as flooding. If it is to be covered on an insurance policy, then expect your premium to be 5 times higher. For people in FL, that would easily mean over $5K a year.
I hope he loses. The insurance company covers losses according to the policy. If flooding isn't there, it ain't covered. Most insurance companies don't cover flooding unless you purchase that specifically in the policy.
No one, and I mean no one in any business, will ever locate in Mississippi ~ and that's why all such jury awards will be overturned on appeal ~ if there's a judge left to make the decisions!
He didn’t buy “hurricane” insurance. There’s no such thing.
1) There was nothing remotely resembling Category 5 winds anywhere on the Mississippi Coast, as Katrina was not a Category 5 landfall or even that close to one there.
2)Storm surge is FAR more effective at completely demolishing a house and leaving a flat slab than wind. And you'll find basically no houses even a few miles inland outside the surge zone that are flat slabs from wind damage.
Storm surge is water in motion with waves on top. You know very little about hurricanes or their damage.
This guy wants State Farm to pay him insurance for coverage they do not even sell. I used to expect better from Republicans, but I guess not. Removing him as majority leader was clearly a good move.
In any case, I could probably weasel out of the flood insurance policy on my house, given that only a portion of the property is below the line. But I choose to get the flood insurance because it is a good deal and heavily subsidized by the FedGuv. I would be an idiot not to take it. After my mortgage is paid off (May 2007!!!), I will still carry the insurance. I would be a fool not to.
But if I am going to have to bail out every uninsured yahoo in Mississippi, and the rates quadruple, I will have to think again.
If Trent is successful and homeowners insurance companies are required to cover flood losses, it will completely change the insurance industry. Hopefully, the companies will start excluding properties that should really be uninsurable, and the subsidies will be eliminated.
There, how's that!
Easy, eh?!
If Trent and Dickie win, contract law will have been stood up on its head. Wind driven surge is specifically NOT protected under standard insurance contracts.
If they do win, where will you get your insurance? - and, please, not a word about the much higher premiums that you will pay to keep the remaining insurance companies solvent. The cost will be passed to YOU and ME.
Additionally, the folks who purchased Flood insurance need to have their premiums refunded if Trent and Dickie win this crazy lawsuit.
What really bothers me is that I live on top of a hill, and if I want to buy flood insurance they won't sell it to me. You have to live in the flood plain to get it, if I want it I can't buy it. Go figure.
Amen. I'm about tired of the whining from people who can afford to live on the water but not to pay the insurance to protect their own property. Gimme a break.
I saw one story where a man had hurricane AND flood insurance coverage. He had some flood damage AND his entire roof was ripped off his home by the wind. THe insurance rep told him they would only pay for the water damage but not both. I forget the ridiculous reason given.
"Storm surge caused by hurricanes is not "flooding", it is hurricane damage."
Agreed. Without the hurricane-force winds, there is no storm surge. Storm surge damage is a direct result of hurricane-force winds.
I managed to argue with the adjustor (through my agent) successfully by pointing out the HUGE payment they gave to Clinton for his "sexual harassment" policy, which paid for attorneys during impeachment. I threatened to write the papers in this heavily Republican area and point out the disparity of the settlements.
I think an argument can be made either way on Lott's home, but I am more concerned about the people who were outside the flood zone and still got a storm surge because of the force of Katrina. Therre was no reasonable reason for those people to have flood insurance, but they lost everything, and the insurance companies are trying to weasel out of those people's coverage as well.
Also, I would like to point out for those who don't know it, that if sewers back up in your home you are not covered by either normal insurance or flood insurance. I ran into this with customers I had several years ago and I discovered you need a separate rider for sewer back-up. If you have a basement, or live in areas that occasionally have this problem, or if you want to make sure you have all your bases covered, this is a rider that should be attached (at least this is the case in Indiana). Earthquake insurance is also something we carry for a nominal fee, because damage from an earthquake is not covered by your regular policy.
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