Pantagraph.com | Money | Ex-area woman recovers from Katrina, insurance battle

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

jbm wrote on Aug 29, 2007 11:03 PM:

" Nobody rewrote the contract or the law, and no home in Mississippi was damaged by flooding only. SF paid wind claims in Tennesee; you can't tell a MS judge or jury that there was no wind damage on the Gulf Coast. Homes were destroyed by the combination of wind and flooding. The federal court affirmed that State Farm does not have to pay for damage it can prove was caused by flooding, but it cannot shift the burden to force homeowners to prove that damage was caused by wind alone. That is the law in Mississippi and everywhere else. SF was hit with punitive damages in the Broussard case because it had denied the claim without even trying to prove that all the damage was caused by flooding. SF then settled cases because it could not prove that all the damage was flooding and because it did not want its actions to falsify the adjustments and engineering reports to be presented in open court. Go the Scruggs site and read the evidence in the RICO suit. Read all the FAEC emails. Some SFers should go to jail eventually. "

T wrote on Aug 29, 2007 10:29 PM:

" Yea right and that's why my agent drove a new Mercedes every year Cause he was saving ME money. Just remember who pays his salary "

The end result... wrote on Aug 29, 2007 8:01 PM:

" Sadly; will be nearly impossible for those who rebuild in the Katrina-hit areas to get insurance after this. What insurance company it their right mind would continue to offer coverages when the state and public opinion re-write the contract AFTER the damage is done?? That is the true tragedy in this.... "

Know your policy wrote on Aug 29, 2007 7:14 PM:

" I spent 8 weeks in La. and MS. after Katrina. The water levels in from the storm surge in many areas was over 20 feet high. You could see the water lines in the trees. Slab claims were obviously from the surge. Hurricane wind damage never wipes a house clean away. Just like a tornado, you will see parts of the home in the area surrounding the property. You have to have experience with storm damage to assess this correctly. The only reason SF is paying more money is becuse they were politically blackmailed by Sen. Lott. and guess what we will all pay for the lack of insight of coastal residents to buy flood insurance. All rates will go up because of it. Oh yeah, your taxes pay for the flood claims too. "

jbm wrote on Aug 29, 2007 6:26 PM:

" Flood insurance is backed by the federal government, but 95% of flood policies are sold by private insurance agents under the Write Your Own program. Agents are paid a commission to sell federal flood policies, and WYO company receives an additional payment for its administrative expenses. The government also pays the adjusters and overpays the company for processing the claims. My guess is that this house in Long Beach was not in the 100-flood zone so flood insurance was not mandatory. In those cases, agents in Mississippi generally said the homeowner did not need it, but made sure they bought plenty of wind coverage without mentioning the flood exclusion or, more importantly, the anti-concurrent causation language that State Farm tried to use to deny paying for wind damage where there also was flooding. "

Seriously wrote on Aug 29, 2007 5:39 PM:

" People did not know that floods can happen other than along coasts and rivers? I heard now they are suing the Army Corps of Engineers because of the poor job they did with the levees. "

TJA wrote on Aug 29, 2007 5:35 PM:

" I do not live in a flood plain, however, I do live along the coast. I had heard other people talking about their flood insurance. When I bought my home I had asked my agent, and she said I do not need one... BUT if I wanted to make sure that I should buy into it. I am glad I did. When Allison came to town I was covered. "

To the FYI at 4:20 am wrote on Aug 29, 2007 4:44 PM:

" If your house was destroyed by tornado and then a flood your insurance would cover the tornado damage(provided you carried that peril) but not the flood damage if you didn't carry flood insurance. Hence, the big argument is over what was destroyed by hurricane or high winds and what was flooding. Most people got partial payouts but didn't think that was enough. So, if you were an adjuster how would YOU tell the difference. Did anyone read the part of the article that said only about 1% are still pending in court? Once again, we only pick up the bad points in the article. How about the many employees who went weeks and months without seeing their families and living in the same conditions as those who were displaced in order to come to the residents' aid? "

FYI - I agree with you 100% wrote on Aug 29, 2007 4:30 PM:

" Nobody knows when a natural disaster is going to happen, and it is the homeowner’s responsibility to have all the right coverage. I have flood AND earthquake insurance added to my policy JUST IN CASE, that way if something was to happen I'd be covered. It is irresponsible of the people in New Orleans who live BELOW SEA LEVEL to not have proper insurance coverage. The same goes for the people who live near rivers or other bodies of water. These people were too cheap to spend the extra money for the additional insurance, and they want to place that blame on the insurance companies. It doesn't matter if the water damage was caused by hurricane winds - it was still water damage and requires additional insurance! These people have NO accountability for their mistakes and I’m so sick of the “woe is me, the big bad insurance companies won’t pay for my damage that wasn’t covered by my policy” routine. Be an adult and be responsible for yourself! "

My Favorite wrote on Aug 29, 2007 4:13 PM:

" My brother-in-law(wifes brother) lives(ed) along the coast. Filed suit to get his insurance company(SF) to pay his claim. Liked to talk about how evil Statefarm is that they didn't pay. Also like to show the pictures of his house he took from a helicopter after the storm. Only part above the water was the roof. The house floated off the foundation. He and his lawyer said the wind did it. I do NOT work for SF. I do have SF insurance. Think he is a horses behind for wanted the insurance company to pay for something he didn't have coverage for. "

momof3 wrote on Aug 29, 2007 3:52 PM:

" to BIG BULLY: What do the employees have to do with it? They don't make the rules, they work for a living just like anyone else. "

my 2cents wrote on Aug 29, 2007 3:39 PM:

" The damage wasn't caused by flood ... State Farm realized that and that's why they "agreed" to pay the initial 50mil. I would imagine most companies did whatever they could to deny the claim bcuz they knew they were in for a world of hurt. "

FYI wrote on Aug 29, 2007 3:22 PM:

" SF Agents do not sell Flood Insurance. They could recommend that you get it, but the government sells that type of policy. Ultimately, it is still the responsibility of the policyholder to know what they bought. Long Beach, MS may not be below sea level, but considering that it is right on the Gulf of Mexico, would it really take a catastrophic incident to cause flooding around there? If your house was right along the San Andreas fault, don't you think that it might be a good idea to have Earthquake coverage (which isn't covered under a typical homeowner's policy? Same concept, different peril. "

pavarazzi journalist wrote on Aug 29, 2007 3:17 PM:

" I visited The City of Biloxi, Mississippi in feb 2007. The people who were rebuilding their homes at that time had sprayed painted signs on the walls of their dwellings. If you Loot we will Shoot. I got pictures.Their were many FEMA trailers everywhere in various stages of condition. I befriended a family who owned property in Biloxi. They told me various freeloaders 14 to be exact had filed false claims on their property through FEMA. "

To: T wrote on Aug 29, 2007 3:15 PM:

" While you didn't make any claims during those 18 years (and you should be happy for that blessing!), thousands of other people did. Say in one year I pay $1000 in home owner's insurance and I need $50,000 worth of repairs due to tornado damage, where do you think that extra $49,000 comes from?? Money doesn't grow on trees. Everybody pays premiums but not everybody makes claims. Some years State Farm pays out MORE money in claims than they collect in premiums...just because you were blessed not to have any accidents or catastrophes in those 18 years doesn't mean that thousands of other people were as lucky. If you had needed to make a claim during those 18 years, you would have been awfully glad that State Farm, a good insurance company, was there....but since you didn't, consider yourself blessed and quit your griping! "

to jbm wrote on Aug 29, 2007 2:52 PM:

" if it was because the "agent didn't sell it to her" then she would have been advised to sue the agent for an error and omission on his part and if proven, that he didn't advise her to get it, the claim would have been paid under the agent's Errors and Omissions coverage that is REQUIRED for insurance producers to carry. So that's not the case. "

to Blame Game wrote on Aug 29, 2007 2:37 PM:

" There is not necessarily anything wrong with failing to buy flood insurance. I have chosen to self-insure against flood. In my case, that makes sense. Perhaps for other people that would not make sense. "

jbm wrote on Aug 29, 2007 1:45 PM:

" Long Beach, Mississippi is not below sea level, not behind any levees, and not likely to flood unless there is an extraordinarly catastrophic hurricane. If she did not have flood insurance, it is because her State Farm agent told her she did not need it when he sold her the homeowners policy with high premiums and hurricane deductible for wind damage that the company refused to pay until the federal courts said they have to actually prove that damage was caused by flooding in order to invoke the flood exclusion. You State Farm people are unbelievable. "

Blame game wrote on Aug 29, 2007 1:10 PM:

" Blame the agent for not selling the proper policies for the affected area or blame the consumer for their unwillingness to pay the higher premium for proper coverage. "

T wrote on Aug 29, 2007 12:17 PM:

" And that's why I would never have SF Insurance again. Had them overpaid insurance for 18 years and never made a claim but each and every year all I saw was up and up in price. Ed Rust gets millions while the poor property owner down south gets the shaft. Curious how many days you spent to help those in need "

to FYI wrote on Aug 29, 2007 12:02 PM:

" No need to call people idiots just because you don't understand their decisions. I live in a flood plain. My first floor sits 2 feet above ground and I keep everything in the basement off the floor. I also don't keep anything in the basement that would be easily damaged by water. People have been living in my area for 25 years with no problems, including the mid 1990s when 15 inches of rain fell in 2-3 days. Can you name me an area of the US not subject to at least one of these perils: earthquake, tornade, hurricane, avalanche, mudslide, or floods? Perhaps you're the idiot. "

To: "Insurance companies are crooked" wrote on Aug 29, 2007 11:57 AM:

" Did you know that often times State Farm pays out MORE in a year in claims than they collect in premiums? They'd been in the tank those years but they are a mutual company that makes good investments so they are able to stay afloat. "

TO "Insurance companies are crooked" wrote on Aug 29, 2007 11:56 AM:

" You get what you pay for...you get the coverage that you pay for, you don't get more for free. If your house floods and you didn't have flood coverage, you don't deserve a cent from the insurance company...lots of Katrina folks found that out the hard way. "

to: insurance companies are crooked wrote on Aug 29, 2007 10:55 AM:

" its obvious you don't know the first thing about insurance. The bottom line is this... you get what you pay for. Is that crooked? The coverage you get is comensurate with the premium you pay. Period. "

to: insurance companies are crooked wrote on Aug 29, 2007 10:43 AM:

" people that get insurance have a responsibility to read and understand what their policy does and does NOT cover. All policies clearly have an "exclusions" area and it's the insureds responsibility to read this so they KNOW what is and isn't covered! So you can blame insurance companies all you want, but it doesn't change the fact that many people don't read their policies, or ask their agents to explain to them what other coverage they should purchase. You don't get free coverage for something that is clearly excluded from a policy. "

Re, Insurance companies are crooked: wrote on Aug 29, 2007 9:57 AM:

" So don't get insurance then, see nothing to complain about. Did you go down and volunteer your time after the hurricane or are you just one of those people that likes to point fingures and complain? less than 1 percent of claims remain pending in court, that is sure quite allot less then some of the other companies out there, seems that 99% of the claims have been settled. "

everyone has a choice wrote on Aug 29, 2007 9:38 AM:

" as to where they live. She was a Bloomignton native.....obviously she chose to move to MS. I would love to live on the coast, but it isn't practical (or logical apparently) for me. So I'll stay on the plains and pay my insurance for tornadoes and flood plain. "

Why... wrote on Aug 29, 2007 9:15 AM:

" Don't you think someone has a choice of where to live? She could have easily moved to a city which isn't below sea level, found a job, and been safe from rising floodwaters. I feel for these people, but it was only a matter of time before something like this happened to the area. "

Insurance companies are crooked: wrote on Aug 29, 2007 8:55 AM:

" "Whatever it takes to make it right,” McCollum said. It doesn't and shouldn't take two years plus to make it right. They are more than happy to take your premiums but aren't so willing to help you when you need it. They are there to make as much as they can and don't care much about those in need. Thanks Mr. Rust. "Like a good neighbor, State Farm wasn't there." "

idiot : ) wrote on Aug 29, 2007 8:49 AM:

" I happen to live in a 500 year flood plain. btw...I don't consider myself too much of an idiot just a small i idiot. The big I Idiots are those who live in this same flood plain and do not have flood insurance. "

T wrote on Aug 29, 2007 8:38 AM:

" To FYI I bet you work for the Farm with the empathy you have for this lady. Glad to see that the Farm is finally "paying" what is owed "

Big Bully!!!! wrote on Aug 29, 2007 8:21 AM:

" Boooooo State Farm. Your employees should be ashamed!!! "

To: FYI wrote on Aug 29, 2007 4:20 AM:

" So if a tornado destroyed your house and then it was flooded you would not want a penny even though you had tornado insurance? That is same type of situation many of the hurricane victims were under. "

To: FYI - your comment wrote on Aug 29, 2007 12:33 AM:

" was VERY rude. You must live where you WANT to live, so what gives you the right to call anyone an 'idiot' because they live where THEY want to live? SOMETIMES people live where they HAVE to live. I do right now and I'm not in a flood plane in the state I now live in, but there were massive floods here about a month ago that wiped out a lot of homes less than 20 miles from me. Perhaps one day you will be in a position or in circumstances to understand that SOME people do NOT have a choice as to where they live. "

FYI wrote on Aug 28, 2007 11:24 PM:

" Buyer's remorse shouldn't be allowed to influence the outcome. I don't use/work for any insurer, but it's pretty clear that the damages there are from flooding due to that cities poor planning/inadequate levies etc. I don't live in a flood plane(only an idiot would), but I know for a fact that I don't have flood insurance, so if B/N goes under water, that's the breaks. "

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