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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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