Lott is a political scumbag. He was paid for his loss by the flood insurance & now he wants to be paid a second time by Allstate. He is nothing but a greedy thief who wants to profit from his loss.
It looks like the problem is that he built a house worth considerably more than $350,000.00 on the waterfront, therefore he could not insure it for the full value under the subsidized federal flood insurance program.
If a house cannot be insured, you should really think long and hard about building it. If you want to take the risk, and you have the money, then take the risk. But if you take the risk and lose, don't come whining to Congress about it.
The sad thing is that this effort on Lott's part will raise the rates on everybody who owns a house in a flood plain, most of which are modest and built responsibly. These people will be soaked to subsidize the super-wealthy who have the money to build mansions on the beach.
He should be paid by Allstate for his wind damage. That is what he paid insurance for.