Katrina floods not covered by insurance: court

[Eugene]

Source: Reuters

Katrina floods not covered by insurance: court
Thu Aug 2, 2007 7:44PM EDT

NEW YORK (Reuters) - A U.S. appeals court ruled on Thursday
that three major insurers are not responsible for flood damages
in New Orleans -- even if "negligence" caused flooding that
inundated the city during 2005's Hurricane Katrina.

-snip-

Residents of the area, along with Xavier University, sued
property insurers Allstate Corp, Travelers Cos Inc and mutual
insurer State Farm.

Residential property insurance policies exclude flood coverage,
which is provided under a federal program. But the plaintiffs
said that, because the negligent design, construction and
maintenance of the levees was responsible for the breaks, the
insurers should pay claims on their homes and property.

The U.S. Court of Appeals for the Fifth Circuit, however, ruled
the insurers' contracts were valid. Even if the construction of
the levees was faulty, the resulting floods were excluded from
coverage, the court said.

-snip-


Read more: http://www.reuters.com/article/topNews/idUSN0226883620070802

[bamacrat]

1. Ah, insurance companies, always looking out for its customers.

:sarcasm:

[Double T]

2. Make certain you NEVER purchase ANY insurance from these corporate..........

scumbags; Allstate Corp, Travelers Cos Inc and mutual
insurer State Farm.

[Occulus]

3. My auto is with State Farm

and has been for years.

Is that bad?

[proud2BlibKansan]

4. So is mine

I have a wonderful agent and I keep the policy just because of him.

[poverlay]

5. I switched from Allstate and told them when they acted like they cared for their customers I'd be

back.(In relation to this Katrina payout avoidance.) I know they're all assholes, but leaving them for another asshole is still leaving them, and if enough people did it they would be forced to pay for all those poor people boosh's courts just fucked again. That or face going out of business.

Isn't education and action our reason for being here?

[Amonester]

8. They won't go out of business. If necessary, they'll just change...

their (TM) and come back screwing up somebody else using their 'new' bizne$$ name, that's all.

That's the way the selected few dominators of our "current culture" get away with everything scot-free.

[poverlay]

12. No doubt you're right, but I don't see any other solution. You? ... nt

[noonwitch]

10. I have State Farm for auto and home

Their rates are lower than AAA, but higher than Progressive or other dot coms. When a tree fell on my house and I needed my agent, he was there quickly. The adjuster made sure that the estimate was for an amount that covered my deductable, too.

[tammywammy]

23. I have State Farm

I just purchased my first home in June. I went with my parents State Farm agent. My brother also uses him. Whenever there's been a bad storm, he's there. I went with him, not necessarily the insurance company, because he's always treated my parents and brother good over the years.

[Double T]

13. ...and like a BAD neighbor, state farm ain't THERE!!!!

Like their NEW jingle? I wouldn't buy ANY insurance from them, but I'm just a radical anti-corporatist!

[Solo_in_MD]

6. This should not have been a surprise to anyone

[0007]

7. ....tis like getting cheney's dick without a shot in the face.

Like war, insurance companies are the scourge of humanity.

......and I owe my soul to the company store.

[Joe Bacon]

9. Michael Moore doesn't go far enough.

I applaud Mike for pushing for single payer health insurance, but actions like this say to me that ALL forms of insurance should be in the single payer model. Get the pimps out of picking your pocket!

[lynne]

11. Read your own homeowners policies -

- and you'll find that flood, rising water and wind-driven rain is specifically excluded and always has been. It doesn't matter what company you're with. Leave your window up and the rain damages your carpet, stereo, etc. = NOT COVERED. Anyone thinking they are protected for flood and water damage needs to read their homeowners policy NOW.

[Ilsa]

18. I know what you mean. I hope the insured can get reimbursed, but

I suspect they will have a hard time with that is they didn't buy into the fed program.

[silverojo]

14. Allstate once again, eh?

Ever notice how often the "good hands" people give their customers the finger?

[Dont_Bogart_the_Pretzel]

15. I wonder if I will be covered if I built my own 50ft levee?

not that I could afford one...

[Politicub]

16. Then WTF is insurance for?

[NuttyFluffers]

17. ahh, the million dollar question...

but sadly none of you will see that million you pay out over a lifetime. i wonder why...? ooh! another million dollar question!
:7

[Ilsa]

19. Flood isn't covered under regular homeowners insurance. It's the federal

insurance program that covers flood. These poor folks probably believed the levies were reliable, so they opted not to buy into the fed program. I hope they have some success in suing for reimbursement from whatever federal agency manages the levies.

[lynne]

22. Insurance is to reimburse for damage done by the perils listed in the insurance contract -

and flood - including wind driven water - is not an insured peril. Both are specifically excluded. If you live in any area that may flood, you need to have a separate flood policy to collect for water damage.

[tammywammy]

20. This isn't a surprise

Homeowners insurance doesn't cover floods. You have to purchase the federal flood insurance for it to be covered. If you live in a flood plain, purchase flood insurance.

[JVS]

21. Wouldn't neglegent design, construction, and maintenance mean they should sue the government?

[Honeycombe8]

24. Homeowners can (and should) buy flood ins. in Louisiana.

As a former Louisiana resident, I can tell you that all homeowners in the southern half of the state should purchase flood insurance. And they can, regardless of whether flooding is covered by some federal program.

This is well known in any low lying area in Louisiana...a state known for its heavy rains, hurricanes, marshy water-logged soil, and flooding.

I understand what these homeowners were trying to do...get compensated for something that they thought was caused by the govt's negligence in building the levies or whatever, and I feel for them. I have family members whose homes were damaged by Hurricane Rita, which occurred right after Katrina. When I lived there, the houses I was in at the time all came so close to flooding that you could step into knee deep water just a few feet outside the front door.

But if you want to be protected from flooding in Louisiana, a homeowner MUST have flood insurance. It is not optional. It is part of the cost of owning a home in south Louisiana.

If negligence in the building of the levies caused it, that would be their recourse...to sue the wrongdoers. But I'm betting you can't sue the govt. for that. Immunity or something. But that's just my guess.

In other words, they're screwed.

[Phx_Dem]

25. USAA

" USAA adjusts claims differently from State Farm. USAA has -- from day one -- adjusted Hurricane Katrina claims responsibly, and we will continue to do so until every claim is closed.

-- According to media reports (Times Picayune, LA eyes State Farm case), State Farm reportedly declined coverage for both wind damage and water damage if any damage to a residence was due to flooding. USAA has a much different approach to claims. At USAA, we evaluate each claim individually and on its own merits. -- When USAA adjusts claims in which there is both wind and flood damage, USAA pays for damage that was caused by wind. -- This approach has served our members well and we will continue to use it until the last claim is closed. 3. Mr. Hood's position: USAA has treated its Mississippi members unfairly. This is not true.

USAA already has paid more than $217 million to more than 17,000 USAA members in Mississippi for hurricane Katrina losses.

-- USAA is proud of our service to USAA members who were affected by Hurricane Katrina. -- After the storm, more than 200 USAA associates worked seven days a week serving USAA members affected by Hurricanes Katrina and Rita. -- USAA believes fairness requires that USAA continue to handle claims responsibly and to continue to work with members until the last Hurricane Katrina claim is closed. And, that is exactly what USAA intends to do.

http://www.smartbrief.com/news/aaaa/industryPR-detail.jsp?id=D277C455-F498-433B-B15B-D3CD64A61A92

Brian and Tracie Craddock weren't home when a 27-foot tidal surge rolled in a half-mile from the beach and raced through their home Aug. 29. Both surgical registered nurses, they were busy at nearby hospitals preparing emergency rooms for Hurricane Katrina's worst.

Lisa Cardenas, a USAA property claims adjuster, photographs the Craddocks' destroyed belongings in Ocean Springs, Miss.

Brain Craddock talks with USAA property claims adjuster Lisa Cardenas at the Ocean Springs, Miss., home that Craddock and his wife rented. The contents were declared a total loss. 'It's the best 18 bucks a month I ever spent,' Craddock said, referring to his insurance premium.

The newlyweds saw their rented house again Tuesday with water stains nearly to the ceiling. Their first call was to family. The second was to their insurance company, San Antonio-based USAA.

"On Thursday, USAA adjusters Lisa Cardenas and Liz Barnes declared the contents of the Craddocks' home on the outskirts of Biloxi a total loss.

"It's the best 18 bucks a month I ever spent," said Brian Craddock while surveying piles of ruined furniture, a 51-inch Sony television purchased last month, and the books he planned to use to pursue his bachelor's degree in nursing.

Cardenas told him the couple would get a $5,000 electronic funds transfer to his bank within a day. In a week and a half, they'd get a full settlement.

The process is being repeated thousands of times by about 50 USAA adjusters working out of Keesler AFB and hundreds more coming in from other insurance firms.

http://www.mysanantonio.com/specials/katrina/stories/MYSA090905.1C.katrina_insurance.730d526.html


Business Week customer service rankings:

1. USAA
http://www.businessweek.com/pdf/270222BWEPrint.pdf

Why is USAA so different? It's a Co-op, they even distribute excess revenue (profits) back to the members.

[lynne]

26. But not even USAA will pay for flood damage under a homeowners -

- as per the article.

"When USAA adjusts claims in which there is both wind and flood damage, USAA pays for damage that was caused by wind."

[Phx_Dem]

27. True--but I think they found ways to provide some coverage

for those without flood ins. The insurance industry should be limited to non-profit companies imo, USAA is a good example of how this could work.