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Allstate won't pay Katrina flood claims
MarketWatch ^ | Sept. 20, 2005 | Alistair Barr

Posted on 09/21/2005 10:01:23 AM PDT by george76

Insurer's operating chief responds to Mississippi suit...

Allstate Corp. won't pay flooding claims stemming from Hurricane Katrina, Chief Operating Officer Tom Wilson said on Tuesday, in a direct challenge to a lawsuit filed last week by Mississippi Attorney General Jim Hood.

Controversy has emerged surrounding the devastating flooding that followed the storm. Standard homeowners' insurance policies typically exclude flooding, partly because a national, government-run program covers those risks. However, many homeowners hit by Katrina may not have bought this extra coverage.

Mississippi's Hood sued Allstate and four other leading insurers in the state on Sept. 16, arguing that their flood exclusions should be voided and that they should pay flood claims.

"Exhibit one for us will be just the national flood-insurance programs -- advertising programs, which they put on very aggressively every year," he said. "People know this is a separate coverage, so we're not having many issues with our customers."

Allstate's Wilson did concede that there will be "issues" when assessing what damage was caused by wind and what was the result of flooding.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Louisiana
KEYWORDS: allstate; insurance; katrina; rita
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1 posted on 09/21/2005 10:01:24 AM PDT by george76
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To: george76

Ha! We'll see about that.


2 posted on 09/21/2005 10:02:55 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all.)
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However, many homeowners hit by Katrina may not have bought this extra coverage.

Why should that be Allstate's problem? For that matter, why should that be the taxpayer's problem? Answer, it shouldn't.

3 posted on 09/21/2005 10:03:34 AM PDT by NonValueAdded ("Freedom of speech makes it much easier to spot the idiots." [Jay Lessig, 2/7/2005])
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To: george76
Allstate won't pay Katrina flood claims

As they shouldn't, unless the storm (and not the flooding) damaged the property.

4 posted on 09/21/2005 10:04:24 AM PDT by IMRight
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To: george76

Mississippi's Hood sued Allstate and four other leading insurers in the state on Sept. 16, arguing that their flood exclusions should be voided and that they should pay flood claims.

And exactly why should they have to pay flood claims if it's excluded?  I guess bankrupting all the insurance companies would make everything better.

Owl_Eagle

(If what I just wrote makes you sad or angry,

 it was probably sarcasm)

5 posted on 09/21/2005 10:05:26 AM PDT by South Hawthorne (In Memory of my Dear Friend Henry Lee II)
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To: george76

ummmmmmmmm did they HAVE FLOOD INSURANCE??? (probably not)

I have no love for insurance companies but they have no reason to pay anything except exisiting policies.

Are they going to try to LAWSUIT them into paying for things they did not cover?


6 posted on 09/21/2005 10:05:28 AM PDT by Mr. K (Some days even my lucky rocketship underpants don't help...)
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To: IMRight

How do you determine what was damaged by wind, and by water. Something with water damage, could have been conceivably damaged by the wind first.


7 posted on 09/21/2005 10:05:46 AM PDT by dfwgator
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To: george76

Maybe they should sue to force Allstate to pay the claims of people who didn't have insurance at all, or might have had their insurance with a different carrier.

What a crock. Go after the deep pockets, who cares if it's right or wrong. The trial lawyers are going to have a field day in the Gulf region.


8 posted on 09/21/2005 10:05:56 AM PDT by Hurricane Andrew (History teaches that wars begin when governments believe the price of aggression is cheap.)
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To: Texas Eagle

May I presume from your comment that you agree that the insurance company should pay for damage specifically excluded from the policy?


9 posted on 09/21/2005 10:06:03 AM PDT by Ben Mugged
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To: NonValueAdded

Allstate has more grounds to sue NO than MS. NO didn't evacuate whereas MS didn't delay.


10 posted on 09/21/2005 10:06:03 AM PDT by saveliberty (Liberal=in need of therapy but would rather ruin the lives of those less fortunate to feel good.)
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To: george76

Allstates competitors should jump at this and say they will cover ALL claims flood or wind. They would soon have all of Allstates customers.


11 posted on 09/21/2005 10:06:11 AM PDT by ladtx ( "Remember your regiment and follow your officers." Captain Charles May, 2d Dragoons, 9 May 1846)
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To: Bacon Man; Hap

Allstate ping!


12 posted on 09/21/2005 10:06:43 AM PDT by Xenalyte (West Houston . . . sorta near where the Beltway and I-10 have that hideous intersection)
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To: Texas Eagle

Nor should they.


13 posted on 09/21/2005 10:06:44 AM PDT by BurbankKarl
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To: george76
The lesson here is you are not responsible for your investments; if you decide to cut corners on insurance the state will sue the insurance company for you. They will not win probably, but if they do, Allstate should pull out of the state (and the other companies will follow)and no one there will have any insurance. I have family in Florida, homeowners insurance is about 4 times what it is here in San Francisco.
14 posted on 09/21/2005 10:07:01 AM PDT by SF Republican
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To: Ben Mugged
May I presume from your comment that you agree that the insurance company should pay for damage specifically excluded from the policy?

No. However, you may presume that The Left will rain down holy hell on Allstate and Allstate will buckle.

15 posted on 09/21/2005 10:07:46 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all.)
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To: george76

I guess those folks with Allstate insurance weren't in 'good hands' after all.


16 posted on 09/21/2005 10:07:46 AM PDT by SuziQ
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To: george76; Southack; Brilliant; Buckhead; little jeremiah; BykrBayb; Calpernia; Cindy; backhoe
Meanwhile, maybe they are at least building their reserves for the covering of future AIDS claims...

Here Are The Facts On The Allstate/Matt Barber Situation

Informational Web Site Launched In Support Of Fired Allstate Employee Matt Barber (Update)
17 posted on 09/21/2005 10:07:46 AM PDT by The Spirit Of Allegiance (SAVE THE BRAINFOREST! Boycott the RED Dead Tree Media & NUKE the DNC Class Action Temper Tantrum!)
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To: george76

Don't worry, the American tax payer is going to pay all those claims and then some. I almost wish I lived in NO. For a couple weeks of hardship I could have a new house at no cost to me.


18 posted on 09/21/2005 10:08:08 AM PDT by John D
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To: dfwgator

That is why you saw buildings on fire...wink wink.


19 posted on 09/21/2005 10:08:20 AM PDT by BurbankKarl
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To: Xenalyte

Great comment.


20 posted on 09/21/2005 10:08:51 AM PDT by Conspiracy Guy (Ponce de Leon is coming here to look for the fountain of dumb. DC is his first stop.)
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To: NonValueAdded

I agree.

Only the feds would think its a good idea to step in and insure where private insurers refused to go, which is why there is a fed flood insurance program.

The MS ag might as well sue the feds claiming that people are covered whether they had flood insuance or not. It makes about as much sense.

Wait...he might just try that....


21 posted on 09/21/2005 10:08:59 AM PDT by Adder (Can we bring back stoning again? Please?)
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To: george76

If the people did not buy the coverage and pay the extra premiums, they don't have a leg to stand on.

To expect an insurance company to pay on non-existent policies is just goofy.


22 posted on 09/21/2005 10:09:09 AM PDT by Skooz ("Political Correctness is the handmaiden of terrorism" - Michelle Malkin)
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To: ladtx

Their competitors don't cover it either.


23 posted on 09/21/2005 10:09:31 AM PDT by Conspiracy Guy (Ponce de Leon is coming here to look for the fountain of dumb. DC is his first stop.)
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To: dfwgator

Unlikely. Water damage is very different from wind damage. When we lived on the bay on the Gulf Coast, we knew the risks we took. We got the flood insurance, and were glad to have it even though we never had to use it. People who try to cheap out shouldn't expect to have their bills paid by those of us who paid.


24 posted on 09/21/2005 10:09:34 AM PDT by MizSterious (Now, if only we could convince them all to put on their bomb-vests and meet in Mecca...)
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To: ladtx
"Allstates competitors should jump at this and say they will cover ALL claims flood or wind."

And if I was a stockholder in one of those companies I would ensure the CEO got canned.....

25 posted on 09/21/2005 10:09:36 AM PDT by Ben Mugged
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To: ladtx
Allstates competitors should jump at this and say they will cover ALL claims flood or wind. They would soon have all of Allstates customers.be bankrupt or raise insurance rates to their existing customers who live across the country.
26 posted on 09/21/2005 10:10:22 AM PDT by quack
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To: Ben Mugged

They may take a big hit now but seems to me that would be made up by the influx of new customers.


27 posted on 09/21/2005 10:10:43 AM PDT by ladtx ( "Remember your regiment and follow your officers." Captain Charles May, 2d Dragoons, 9 May 1846)
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To: Adder
Only the feds would think its a good idea to step in and insure where private insurers refused to go, which is why there is a fed flood insurance program.

In California, the gov't does earthquake insurance.

28 posted on 09/21/2005 10:10:43 AM PDT by TheDon (The Democratic Party is the party of TREASON!)
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To: george76

Hmmmmmmm. Why do insurance companies always own the tallest buildings in town?


29 posted on 09/21/2005 10:10:47 AM PDT by Hegemony Cricket ("I don't care what you do, just DON'T throw me into the Breyer patch!" ~John "Brer" Roberts)
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To: SuziQ
I guess those folks with Allstate insurance weren't in 'good hands' after all.

Yeah but at least they don't employ homophobes. /sarcasm

30 posted on 09/21/2005 10:11:48 AM PDT by dfwgator
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To: george76

Everyone on the Gulf Coast is informed by their insurance company, neighbors, the press... that homeowner's insurance does NOT cover flooding (rising water). You must have flood insurance for that.


31 posted on 09/21/2005 10:11:53 AM PDT by Rocky (Air America: Robbing the poor to feed the Left)
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To: SuziQ
I guess those folks with Allstate insurance weren't in 'good hands' after all.

They were in good hands.The homeowners simply didn't opt for flood insurance,which they had opportunities to do.No reason for Allstate to pay.That would like my insurance company covering the cost of my vehicle in a wreck,even though I only had liability insurance.

32 posted on 09/21/2005 10:12:40 AM PDT by quack
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To: george76

The good hands people?


33 posted on 09/21/2005 10:12:45 AM PDT by b4its2late (FOOTBALL REFEREES: Best seat in the house, and we're paid to be there.)
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To: Hegemony Cricket

So they won't flood..


34 posted on 09/21/2005 10:12:55 AM PDT by eyedigress
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To: Texas Eagle

Allstate can't afford to buckle. It would be a terrible precedent, for the industry and also, in my opinion, for the rule of law in our country.

It is a basic constitutional principle, which relies on British common law tradition going back to Magna Carta, that it is TYRANNICAL to change the law ex post facto. If you have a contract or solemn agreement, you can't change it later just because it's convenient for you.

My insurance company specifically excludes flood coverage from my home policy in very large type, and I imagine Allstate does too. It offers to arrange flood coverage through another insurer, but only for an extra fee. You get what you pay for. You honor the contract you sign. Otherwise the rule of law goes up in smoke.


35 posted on 09/21/2005 10:13:25 AM PDT by Cicero (Marcus Tullius)
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To: ladtx
Offer retroactive policies where coverage for Katrina could only be extended to homeowners that commit to purchasing the flood damage rider.
36 posted on 09/21/2005 10:13:53 AM PDT by Mulch (tm)
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To: george76
That's the problem, when something like this happens, all the deadbeats who don't carry insurance come out of the woodwork and expect to be indemnified at the expense of the people who DO pay to properly insure their property.

I don't want my insurance costs going up to pay for people who aren't even insured by Allstate. And yes, I'm sorry about your loss.

37 posted on 09/21/2005 10:13:58 AM PDT by Kenton ("Life is tough, and it's really tough when you're stupid" - Damon Runyon)
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To: george76

That's All-State's stand.


38 posted on 09/21/2005 10:14:25 AM PDT by <1/1,000,000th%
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To: dfwgator

Is storm surge considered the same as a flood? whoever on this thread mentioned that the lawyers are gonna have a field day is spot on.


39 posted on 09/21/2005 10:14:28 AM PDT by dmz
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To: george76

All State should not submit to the scam idea that the flooding damage was caused by the wind. I would be happy to have the Federal Government to get out of the flood insurance business, and leave it to the free market.


40 posted on 09/21/2005 10:14:30 AM PDT by Sthitch
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To: Texas Eagle

IMO, hard to see how Mississippi can win that suit - looks to me the state is trying to jawbone the insurers into more generous payoff under the provisions that do apply (or perhaps that a politician is jsut playing to the voters) also looks like Allstate at least in not gonna' play ball.


41 posted on 09/21/2005 10:14:42 AM PDT by M. Dodge Thomas
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To: Texas Eagle; george76

What's the issue? If they didn't buy the supplemental, then they are out of luck. Am I out of line with that thinking?


42 posted on 09/21/2005 10:14:43 AM PDT by Perdogg
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To: george76

I'm not so sure this is as cut and dried as most think. NO flooding due to a levee break is a true flood IMHO. But what about buildings that aren't in a flood plain but were hit by the extraordinary storm surge? Isn't the surge a result of the high winds? I'm not picking sides, but I see the argument.


43 posted on 09/21/2005 10:14:47 AM PDT by colorado tanker (The People Have Spoken)
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To: Hurricane Andrew
Maybe they should sue to force Allstate to pay the claims of people who didn't have insurance at all, or might have had their insurance with a different carrier.

Don't give them any ideas.

BTW, I think I'm going to cancel ALL my insurance, who needs it anymore? I'll just hire a lawyer and sue somebody when anything bad happens to me.

*sigh*

44 posted on 09/21/2005 10:15:22 AM PDT by Lurking in Kansas (Nothing witty here… move on.)
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To: eyedigress

You betcha! :-)


45 posted on 09/21/2005 10:15:54 AM PDT by Hegemony Cricket ("I don't care what you do, just DON'T throw me into the Breyer patch!" ~John "Brer" Roberts)
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To: george76

I applied for a job at Allstate once. While they did not hire me, they DID take my address off the application and proceed to bombard me with junk mail.


46 posted on 09/21/2005 10:16:00 AM PDT by YourAdHere (Ask me about my book, Bradypalooza.)
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To: george76

Oh my, what will Kanye think!!


47 posted on 09/21/2005 10:16:03 AM PDT by JZelle
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To: IMRight
If the storm pushed a tree into the house, Allstate would have to pay.

If the storm pushed the water into the house through the storm surge, Allstate should pay, unless a rider specifically excludes 'wind driven water' or all water damage.

If it's a levee break or a river flood, then Allstate shouldn't have to pay.

Seems pretty cut and dried to me.

48 posted on 09/21/2005 10:16:18 AM PDT by pierrem15
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To: george76

Allstate doesn't like paying any claims.


49 posted on 09/21/2005 10:16:31 AM PDT by SolarisRocks
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To: Texas Eagle
Ha! We'll see about that.

This is really simple,if the policies in question specifically state that "flood" (my word) damage isn't covered,then that's it.My understanding is that most,if not all,standard homeowner's policies deny coverage for "flood" (again,my word) damage,just as they do with earthquake damage(unless you pay extra and get a rider).

And,BTW...are you the same "Texas Eagle" who once posted to the Fox News Sunday board and was once on Rush's show?

50 posted on 09/21/2005 10:17:16 AM PDT by Gay State Conservative
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