LAKESHORE, Miss. -- A lot of people believe their homes were destroyed by tornadoes generated by Hurricane Katrina rather than the storm's killer surge, but John Trowbridge makes a more compelling case than most.
Trowbridge's modest two-story home near Waveland was demolished along with two neighboring homes while other houses of the same style and age in the neighborhood remained standing, despite taking about 8 feet of water. That led virtually every insurance adjuster and engineer who inspected the scene to conclude that a tornado touched down and caused the devastation, Trowbridge and his attorney say.
Yet his carrier Nationwide has paid him only $515.62 (after subtracting a deductible of about $2,000) and denied his request for additional payment, saying it was not liable because Katrina's storm surge caused at least some of the damage. "Loss resulting from water or water-borne material is not covered even if other perils contributed, directly or indirectly to cause the loss," Nationwide's adjuster wrote in his denial letter.
A spokesman for Nationwide said he could not comment directly on the case, citing both privacy issues and the pending litigation.
Trowbridge and his wife, Judy, are among thousands of homeowners battling their insurance companies in the ongoing wind vs. water debate that is still a prime topic of conversation among Katrina survivors and is seen as a major barrier to the ability of many people to rebuild in southern Mississippi.
Like bereaved victims passing through various stages of grief, many homeowners have followed a predictable pattern in their dealings with insurance carriers: Optimism that their claim will be honored, outrage when it is denied, bargaining that is usually fruitless, mediation and finally litigation.
'My blood pressure goes up'
We are now well into the litigation phase, as plaintiffs' lawyers have signed up perhaps 1,000 or more clients in south Mississippi alone, and cases are beginning to wend their way through state and federal court. Dozens if not hundreds of cases are pending as well in Louisiana, where frustrated homeowners have filed suit against insurance companies, levee boards and the U.S. Army Corps of Engineers over damage related to Katrina.
"Every time I hear the name Nationwide my blood pressure goes up," said Trowbridge, 51, a supervisor for Lockheed Martin at NASA's Michoud assembly facility in New Orleans.
Trowbridge's house was one of an estimated 134,000 that were destroyed or badly damaged in Mississippi, and several lawyers say many of the owners are turning litigious as they conclude they have few other options if they want to try to get more out of their insurance carriers.
"They are going to lose every single one of those suits once they get to trial," state Attorney General Jim Hood said of the insurance companies. "Those juries are not going to have any mercy on them."
Hood, who filed suit against major carriers on behalf of homeowners less then three weeks after Katrina swept ashore, called on the insurance companies to "come to the table" and negotiate an agreement offering an interpretation of their policies that is more favorable to homeowners.
"Otherwise they will continue to get hammered by juries for 10 years out," he said. "I want the insurance companies to do their part, nothing more."
The insurance industry contends that damage from storm surge is properly excluded as a type of flooding, which generally is covered only by separate flood insurance offered by the federal government that offers a maximum payout of about $250,000 for structural damage. Many homeowners who lost their homes in the storm were not required to carry flood insurance, and even some who had the coverage are suing for compensation for damage they say was caused by wind.
Lawsuit 'threatens ... industry's financial stability'
Hood's lawsuit "threatens to undermine the insurance industry's financial stability and its ability to respond not only to its obligations arising out of Katrina, but also its ability to respond to other claim obligations in Mississippi and elsewhere in the U.S.," said Dick Luedke, a spokesman for State Farm, the largest insurer of homes in the state.
The suit "is challenging the validity of contracts in Mississippi, and that threatens the foundation of the economy in that state and has enormous ramifications for every resident of the state," he said.
In addition to the case filed by Hood, litigation against the major insurers is moving ahead on several fronts.
Richard "Dickie" Scruggs, a well-known Mississippi plaintiffs' attorney who lost his own Pascagoula home to the hurricane, has filed lawsuits against five major insurance companies on behalf of seven clients, including Sen. Trent Lott and Rep. Gene Taylor, who both lost their homes. Scruggs has advertised heavily and says he has been retained by 850 clients who are prepared to sue in what amounts to a virtual class-action case.
Click to read previous related story, 'No assurances on insurance'
In one of the first decisions issued so far in the Katrina lawsuits, U.S. District Judge L.T. Senter denied Allstate Insurance Co.'s motion to dismiss one of Scruggs' cases and said Allstate would be liable for damage caused by wind and rain "regardless of whether a later inflow of water caused additional damage that would be excluded from coverage."
Another lawyer, Richard Phillips, has filed a separate class-action lawsuit against State Farm Fire and Casualty Co., contending that the carrier is improperly excluding losses caused by a combination of wind and water.
Trowbridge's attorney, Randy Santa Cruz of Bay St. Louis, is taking a slightly different approach, using engineering reports and meteorological data in an effort to prove on a case-by-case basis that his clients' homes suffered substantial wind damage before the storm surge hit.
Santa Cruz said insurance companies including State Farm and Nationwide are "badly misinterpreting" their own policies.
"I think it's an organized scheme on their part to avoid paying claims," he said. "They have to pay damage that would have occurred in the absence of a storm surge. They can't tell me there wouldn’t have been any damage without a storm surge. They have the burden to prove the existence of their exclusion."
'Fraudulent denial of claims'
Santa Cruz is also looking into reports that some engineering firms might have been pressured to change their conclusions to satisfy insurance company demands. In at least one case, an engineering report allegedly was altered to delete a reference to wind as the cause of damage to a Gulfport home and then signed with a forged signature, according to a complaint filed by homeowners Hubert and Joyce Smith. A lawyer for the engineering firm declined comment, saying the Smiths' complaint had not yet been formally served. A grand jury in Gulfport has subpoenaed insurance company documents, and Hood is investigating what his office described as the "the insurance industry's fraudulent denial of claims on the coast."
In Trowbridge's case, his wood-frame house was reduced to a heap of jumbled blue-gray lumber, insulation and assorted debris, while a half-dozen nearby homes of similar style and age were still standing and appeared structurally sound, although they had taken on up to 8 feet of water and needed significant repairs.
Only the homes of Trowbridge and two neighbors were destroyed so utterly that the experts who saw it concluded it must have been the result of localized intense wind activity.
"It is likely that tornadic activity occurred at or near the referenced address and caused substantial wind damage," said a report prepared for Nationwide by Conestoga-Rovers & Associates, an engineering firm. However, the report concluded that the house was destroyed by "a combination of forces consisting primarily of hurricane induced storm surge, wind-driven waves and the impact of floating debris."
Trowbridge's case is hardly unique. John "Corky" Hadden, 45, a financial adviser who owned a big home worth more than $500,000 in a prime Bay St. Louis location across from the yacht club, was left with little more than a slab and virtually no coverage from his homeowners' insurance. He, his wife and three teenage children are determined to rebuild on the same spot, where Hadden lived as a boy until the previous house was destroyed by Hurricane Camille in 1969.
Mediation ends in frustration
Just up North Beach Boulevard, Dr. Wesley McFarland, 82, and his wife, Rosemary, are staying part-time in a FEMA trailer on the now-vacant lot where they lived more than 50 years in a home that was worth more than $1 million with its contents, he said.
McFarland recently brought his case to a state-sponsored mediation hearing with a 42-page report he prepared, documenting what he called clear signs of wind damage to his former home. State Farm representatives offered less than 0.5 percent of what he sought. McFarland said, and the physician later appeared on a television advertisement paid for by Scruggs' law firm denouncing the mediation process.
Dr. Wesley McFarland and his wife Rosemary have little left of their home except for the front steps. (David Friedman / MSNBC.com)
The "slab claims" of Hadden and McFarland are among the most common type of insurance dispute being contested in Mississippi. State Insurance Commissioner George Dale, in a March 24 letter to State Farm, reminded the carrier that it cannot simply deny a claim for wind damage because the storm surge would have destroyed the home anyway. Instead, adjusters need to take into consideration accounts from witnesses and damage to neighboring homes and pay out whatever portion of the loss was due to wind, Dale said.
That offers a huge opening for plaintiffs like Hadden, whose lawyer, Santa Cruz, talks about sustained winds of 130 mph and witness' accounts of tornados in the beachfront area.
"The evidence is going to be pretty clear that there was extensive wind damage before the storm surge," Santa Cruz said.
For his part Hadden still seems to have a hard time believing that his claim was denied outright.
"I have been very careful about how I handle my financial situation," he said. "I met regularly with my insurance agent. I don't mind paying for small things but I wanted to avoid catastrophic losses. I felt like I had done everything by the book."
After the hurricane, Hadden was so confident about his insurance coverage that he actually spray-painted a notice on one of the surviving concrete-block pillars of his home: "All is well. Thank God and State Farm."
Molly and John "Corky" Hadden lost their beachfront home in Bay St. Louis to Katrina. Click ‘Play’ to see and hear Corky Hadden describe their legal battle with their insurer.
Those last three words have since been covered over with more spray paint. "State Farm in my opinion made a business decision to force people like us to take legal action to try to recover our money," Hadden said. "I think it's a terrible way to do business, and it's really one of the single biggest factors holding back the recovery of our coastline, the way that we've been treated by the insurance companies."
McFarland, a large, outspoken man who still works three days a week as a physician at NASA's Stennis Space Center, is also furious about his treatment by State Farm. "These people sold me something," he said. "I expect them to pay me what they owe me. If it takes two years, four years or more, we'll wait."
Trowbridge, in a baseball cap and windbreaker, still stares at the scene of his home's wreckage with a mixture of sadness and disbelief. He remembers the name of virtually every insurance agent, adjuster and engineer he has encountered since he first saw the destruction two days after the storm. He and his wife, Judy, immediately turned around and drove 100 miles to Hattiesburg and then another 230 miles to Birmingham, Ala., to find a working phone and file their claim.
After weeks of calling and waiting to hear an answer, the Trowbridges finally were told just before Thanksgiving that their claim was denied. Trowbridge, angry but determined, called the adjuster's supervisor in Memphis, Tenn.
'Happy Thanksgiving,' and goodbye
"I said, 'Can't we negotiate about this? Offer me something, please. Deal with me.' He said their lawyers had decided they could win in court. He wished me a happy Thanksgiving and then hung up," Trowbridge said.
Trowbridge retained Santa Cruz as his attorney shortly afterward, and they continued to try to reach an agreement by going through a mediation hearing arranged by the state Insurance Department. About 1,650 policy-holders have scheduled mediation, with 189 of the first 216 cases settled before or at the hearings, according to the department.
But in Trowbridge's case, Nationwide was unwilling to offer anything more.
"I was actually hopeful that we could come to some sort of agreement," he said. "They told me that you should be happy you got your flood (insurance)."
Trowbridge was paid in full by the National Flood Insurance Program and got about $120,000, although his losses were much higher. The Nationwide policy valued the house and contents at about $230,000, said Santa Cruz, and the lawsuit also seeks payment for replacement costs, attorney fees and punitive damages.
The Trowbridges knew they were potential targets for a killer storm, and after the 2004 tsunami in the Indian Ocean began to make plans to move to higher ground. Last spring they bought a piece of land on Firetower Road, near one of the highest points in the county, and began working feverishly to remodel their home, putting in new floors, new kitchen fixtures and a remodeled bathroom.
“We were to the point of putting a sign out” to sell it, Judy Trowbridge said.
Now they have taken out a loan from the Small Business Administration and are beginning work on their new home some 15 miles to the north.
"There was a while that we thought we were going to have to seek medical attention for depression," John Trowbridge said. "It still is a depressing time in our life."
Trying to remember 'normal'
I thoroughly agree that you are being hoodwinked by your insurance carrier. The reason for buying insurance and paying the premiums for all those months is so that when the odds are stacked against you, you have an "insurance" to help you keep on. That is what the policy buyer thinks. I think that in the insurance agent, and company mentality, they actually believe that your payment is there to feed their family, clothe their children, send their kids to private school and then to college, and tough luck for you if something bad happens; they will find some way to deny your claim!! I personally agree that insurance difficulties are what is going to hold back any development for some time to come.
Jane Owens, Slidell, La. (Sent Apr 2, 2006 9:50:56 PM)
our goverment will sit idly buy and say it's business...and they can't tell insurance companies what to do or how to run their business...
what you need is a few attorney generals like spitzer (NY)...who will certainly ruffle some major feathers.
And remember...if and when these crooks pay the claims...they will then announce that they can no longer do business in the affected states...
oceanview (Sent Apr 3, 2006 4:30:19 AM)
they will settle with all who sue before the court date they are drawing interest on moneys as long as possible{it's good business sense}....but it also makes you hate them
andy,ms (Sent Apr 3, 2006 8:09:23 AM)
This sort of thing is a racket and it is VERY widespread.
Ivan hit here a couple of years ago. A friend of mine's home, about 20 miles inland, was severely damaged by what had to be a tornado in the middle of the storm. Her roof was lifted and set back down, breaking all the seals and allowing wind-driven rain into the structure for eight hours. The interior was TOTALLED.
Allstate tried to pay only for the roof - at something like $100 a square. Can you get the work done for that? No. And the interior? What interior?
The SMART thing for them to do would have been to total the house and cut her a check. But no! So instead they got treated to a battle royale, and ultimately, the house got fixed - more than a year later.
Needless to say, there are a number of insurance companies that will NEVER see another nickel of my money. Allstate is one of them - but not the only one. This sort of organized racket is one that juries need to step in and take care of, and I suspect they will - in spades.
If you're having trouble with these folks, don't bother with the mediation nonsense. The way to solve this problem is simple - file the claim and if denied, sue. Period.
I am not normally one to advocate this sort of path, but in this case I believe that this sort of activity on the part of the insurance companies is an ORGANIZED scheme to bilk their customers - and it needs to stop.
Karl Denninger, Niceville FL (Sent Apr 3, 2006 9:36:55 AM)
" Nationwide is on your side".....yeah right...tell me another one....cause that one is a real knee slapper....at least I know who I won't purchase a policy from
andy,ms (Sent Apr 3, 2006 9:44:29 AM)
People work hard for their money and to build homes, they pay enough for insurance including other bills. They should be compensated for the whole entire building. We lower class people suffer enough and have to struggle thru life including homeless and all these rich folks do not pay taxes they should be paying out taxes and helping us instead us struggly for them
Joyce - New York (Sent Apr 3, 2006 9:55:20 AM)
I feal that it is time for the rest of the country to help out. We need to know if the Insurance Companies we deal with are satisfying their customers or not. We need a tally of suits filed against which companies. This should be public data. If I switch from Nationwide where do I go?
Henry Bruewer Whitehall, MI (Sent Apr 3, 2006 10:14:25 AM)
Vicitims of Hurricane Rita are battling the same issues in Texas and SW Louisiana. The vicitms of this storm are not getting the same level of attention to their plight as those of Hurricane Katrina. Those that I speak with regularly from Port Arthur are hearing the same style "argument" from their insurance company - weak soil casued their house to crack - that another condition caused their houses to fail. Ironic that all of these houses failed do to weak soil and not the tornadoes or 100+ mile per hour winds that bulldozed the community. Everything that blew down blew in the direction the wind was blasting, north to south on the west side of the eye. I do not understand how the representatives of some insurance companies are able to sleep at night.
Lewis Biggers, Houston TX (Sent Apr 3, 2006 10:16:52 AM)
This is how the insurance companies are going to get their money back for the Katrina costs. My son lives in the country. He bought his home from a couple who had lived their for 33 years. Everything imaginable was discussed before this investment and never in the 33 years the former owner had any flooding of the five acres. Don got a letter from his insurance company and they tell him he lives in a FEMA flood zone and has to come up with $500.00 more dollars per year for flood insurance. He has been there three years, so now his insurance costs him well over
a thousand dollars and he is disabled. I had a kitchen fire many years ago and ended up doing the cleanup work myself because the insurance companies
fight to pay as little as possible. They were a racket then and still are.
Jeanie A. Sinclair (Sent Apr 3, 2006 10:23:33 AM)
It is so infuriating to hear about the total lack of integrity by these insurance carriers. Makes me wish I was a Mississippi resident so I could sit on one of those juries and finally hold them accountable.
Situations like these are so far reaching. The level of mistrust all along the coast must run very deep. I know this is not the first hurricane where this has happened but this is the first major catastrophe where we get to hear directly from those affected rather than being spoon fed information by the media. The internet and forums such as this one make all the difference. I know I have make note of the carriers cited in this story and will steer clear of their obviously empty claims.
Rhonda Honegger, Williamsburg, VA (Sent Apr 3, 2006 10:36:28 AM)
Altough I feel sorry for the losses of the great number of people affected by hurricane Katrina as an insurance agent I undertstand the positions taken by the insurance companies. Policies are written to include and exclude different causes of covered loss and in these cases the losses in many cases are caused by the storm surge which is clearly not covered. It would be very difficult for an insurance adjuster to determine that the storm surge was not the cause of the loss when they are standing on just the remaining slab when all around them are clear signs of a tremendous storm surge. The wind probably damaged the house but from what he can see the storm surge washed the house away. Before we all jump to say that the insurance companies should pay for all the damage because it might have been wind damaged before the storm surge arrived lets think about how we would handle this and what we are willing to pay. Do we want the insurance companies to pay for something that was clearle not cobered on the policy and them expand our policy to cover things that are not covered now. The increase in all of our rates will be overwhelming. This is bad situation for all affected but I don't think that the insurance companies should be forced by our legal system to pay for damages that they are not liable for.
Mike Brents, Kingsport, Tn (Sent Apr 3, 2006 10:48:02 AM)
I'm going to cancel my coverage (home & auto) through Nationwide. I wish everyone would so that they'd go belly up.
Stacey, Indianapolis (Sent Apr 3, 2006 11:17:36 AM)
This is really unfortunate. Regardless what the lawyers and state AG's say, it all boils down to how the homeowner's policies are worded. In retrospect, if the state legislator and/or state insurance commissioner allowed the air and water tight exclusion wording in the policy, you bet they will use it. To do otherwise exposes the directors and officers of insurance companies to another threats - incompetence, mismanagement of funds and leastly, shareholders revolt. The only solution is either to legislate a (or have a court-mandated) forced arbitration.
BMDiego, Pickering, ON (Sent Apr 3, 2006 11:18:31 AM)
I think it's past time that Congress take up a bill to make insurance companies honor their comitments to their clients and pay for their homes and properties no matter what the cause. For too many years insurance companies have been taking and taking money from people who trust them to uphold their end of the bargain when a disaster strikes only to learn that the "fine print" lets them off the hook. And because in order to get a mortgage you have to have insurance, we the people are at a disadvantage. So now its up to the Congress to set things straight.
Paul K, Newark, DE (Sent Apr 3, 2006 11:20:13 AM)
It is cheaper for insurance companies to go to court than it is for them to pay up on the insurance policies. That is why all claims are denied. Watch Rainmaker. It's enlightening on how insurance companies work.
Nancy, Provo UT (Sent Apr 3, 2006 11:33:02 AM)
The "Insurance Industry", the largest industry in this country, is one of the only industries out there not federally regulated...lots of money out there for the lobbyists to keep it just the way it is...do some research on your own..."it is what it is"...if the public did to people what the insurance industry does to people we, the public, would be sued, fined and/or behind bars...think it's "high time" for some accountability...not only from the companies themselves but from those "persons" in Congress we've elected to run this country "for the people"...and yes, everyone's premiums, all over the country,will rise as a result of the hurricanes...insurance companies never lose, they recoup any losses through increased premiums for "EVERYONE"..."it is what it is."
Dan J. DeMuth Louisville, KY (Sent Apr 3, 2006 11:44:14 AM)
Insurance for homeowners is mandatory, if there is a mortgage. Insurance for drivers is mandatory. If the insured individual doesn't pay, penalties are severe. If payment is not timely, there is no mediation. The insurance company cancels. Period. The next insurer simply charges higher rates. The whole system is set up so that insurance companies collect. However, when it is time for the insurance company to pay up - the story is always the same. There are no deadlines for them. They'll simply starve the insured individuals out during a deliberately protracted litigation process. It's always that way. Always!! In every contract there is the implied warranty of good faith and fair dealing. I hope juries in the devastated areas hit insurance companies with punitive damages - now is the time to send a message. That message should be - pay promptly according to contract or be punished financially!!
T. Taylor-Hinton, Madisonville, Kentucky (Sent Apr 3, 2006 11:49:50 AM)
The stated objective of this administration is supporting big business. Having to pay justified damages as an innsurer would thwart that end. FEMA and Homeland Security have shown us just exactly how safe we are, you expect insurance companies to care?
Barbara Goetz, Columbia Maryland (Sent Apr 3, 2006 11:55:35 AM)
I am looking at changing my insurance company from State Farm to another one that supports the insured. If everyone did the same the insurance companies would come in line with the policy holders fast. Cash flow is a major issue for insurance companies.
I was planning to retire on the Mississippi Gulf Coast
and now know who not to get my home insured with from the many articles. Where is the GOP leaders when the people without homes need them the most? Taking a case to court can take years, and living in a FEMA trailer is not what these families pay insurance for all these years. State Farm and Nation Wide will pay
after many of these cases are heard in court.
Marc R. A. Yeager, Indianapolis, IN 46217 (Sent Apr 3, 2006 11:57:44 AM)
Every homeowner in this country needs to understand that no matter what insurance company you have your home owner's policy with, it is highly unlikely that you will be made whole by your insurance carrier, when you place a claim, whether it is a small claim, or because of a disaster. You don't pay your premiums...your cancelled. You place a claim, and you get paid, IF AND WHEN the insurance company feels like it.
Ann Ambrose, Montgomery AL (Sent Apr 3, 2006 12:00:02 PM)
As an employee of a major insurance company, I take exception to many of the comments here. Too many people, in an effort to keep their homeowners insurance premiums low, under-insure their homes against the advice of the agents. When a total loss occurs, they complain about the amount of money they receive for the claim. If they had insured properly this would not be such a problem. Bottom line is, if you are unsure of what your policy covers, check with your agent, then LISTEN to their suggestions. Ultimately, it is your house and you are responsible for selecting a proper coverage amount.
Dave- Castro Valley, Ca. (Sent Apr 3, 2006 12:06:32 PM)
What happen to all the talk about lawsuit abuse? Looks like the people who complained the most about lawsuit abuse can solve there problem with mediation. Where is all the talk about the large pay outs these poor companies will be forced to make on meritless lawsuits.
John Doe (Sent Apr 3, 2006 12:15:51 PM)
To the gentleman who wondered which company he should go with, as opposed to Nationwide, if you have served in the military, or anyone in your family has, try USAA. My parents and myself have used them for years & they have proved to be quite reliable in terms of compensation for wind damage, auto accidents, etc. GOOD LUCK to everyone affected- this is absolutely disgusting on the part of these companies.
Laurie Menzl, New Market, MD (Sent Apr 3, 2006 12:46:44 PM)
I am a personal injury paralegal and my firm, and lawyers, in general, know that insurance companies are "legal pirates". They take your money, and nvever pay out for a claim or only pay a quarter of what your claim is worth. They never pay full value on any lcaim whether it be homeowners, personal injury, auto, medical, etc. That is why insurance companies own everything and have the biggest lobbyists in the country, because they take everyone's money and never pay off. In this country, you are better off if you own nothing, have no job, no ambition, etc., at least you do not have to pay insurance, taxes, etc. So who's smarter, we people who have insurance, or those that do not???? It all comes down to the same scenario, everyone, insured or not, have to pay out of their own pocket. I wonder what the insurance companies would do if everyone in the country decided not to pay for any type of insurance????????
Teri Smith (Sent Apr 3, 2006 12:47:27 PM)
I may get flack for this, but here goes...
While there are some insurance companies whose claims practices are less than desireable (to put it nicely) many are on the up and up. To paint the entire industry with the hateful brush is not going to solve anything, and is alienating a large group of people whose goals are to sell a needed product and educate consumers. Most of the examples stated in this article are outrageous, and I sincerely hope that fair decisions are made at trial.
One thing that I find hard to believe is the amount of people who live in high-hazard catastrophe zones who are unwilling to pay for adequate coverage. This means correct limits of insurance, and the right kind of coverage they need to recover from disaster. Many of the unfortunate victims of the hurricanes have no flood insurance, and are fully expecting an 80% water damaged home to be 100% covered under wind on their homeowners policy. That is outrageous, and yes that will not only force some smaller companies out of business, but will also force some of the larger carriers to flee your state. If your home was half wrecked by wind, then finished off by the storm surge, you are only entitled to 50% of the loss under your homeowners policy (for wind damage) - the rest SHOULD be covered under your Flood Policy, if you were smart enough to buy one.
Unfortunately catastrophe claims will not get better until BOTH sides learn to play by the rules. Report insurance fraud - from both sides of the fence.
A Dying Breed (Sent Apr 3, 2006 12:59:18 PM)
the whole concept of insurance makes my blood boil. I do not live in a Katrina affected area, however, I can feel their pain. Anyone who has ever had to deal with insurance should understand. What is the point of having insurance if it doesn't do what it is intended to do? I think insurance (including medical and car, etc) needs to undergo a reform of sorts. It is getting out of control! Not only will Katrina victims have to deal with this, but the rest of the customers across the united states will pay as well, in one form or another. It is ridiculous.
leslie, Oklahoma city (Sent Apr 3, 2006 12:59:54 PM)
I haven't found an honest insurance company yet. I read the entire Trowbridge story and the movie Rainmaker came to mind. Its a racket and its legal, can't get a mortgage without it. I hope the insurance companies are compelled to pay you folks its only fair. Im sure the insurance companies will turn to the federal government for a bail out.
Maureen, Houston (Sent Apr 3, 2006 1:00:33 PM)
The insurance companies are not the only obstacle to rebuilding and/or repairing -- if the insurance company pays, and you are unfortunate enough to have a mortgage through companies such as HSBC (f/k/a Household Finance -- a predatory lending company), they hold the insurance money hostage until you pay for the repairs, then want you to pay for THEIR inspectors to inspect what has already been inspected numerous times. Most of us ordinary people do not have $20,000 or more to put on a new roof, or whatever needs to be done. During the six months plus that you fight with your insurance company and then your mortage company, your home is sustaining more damage as a result of not being able to make permanent repairs. It is a never-ending cycle of bad business, bad faith, and no-government oversight.
Madaleine D'Andrea, Delray Beach, FL (Sent Apr 3, 2006 1:04:01 PM)
The insurance companies played this game with us in '92 with Andrew. Many companies even refused to write windstorm policies in S. Fla. and forced homeowners to obtain policies through a state-operated JUA. We ended up with iffy coverage from a company we'd never heard of, but there wasn't much choice. Strangely enough, though, the same companies still offer flood insurance in S. Fla (which is required since most of the area is considered a flood zone). Same thing, different storm. I wish everyone the best of luck.
CC, Seattle, WA (Sent Apr 3, 2006 1:08:14 PM)
As an insurance agent in a hurricane prone state (Florida), I am at a loss as to how an insurance company can determine cause of loss when the entire structure is completely gone. Did the wind destroy it first and then swept away the debris by surge? Or was it completely destroyed ONLY by the surge? Having been an agent for 26+ years, please believe me when I state that I am no fan of insurance companies but by the same token I am still shocked at the vast majority of homeowners who live near the ocean but adamantly reject flood insurance. They will only purchase it when forced to do so by their respective lenders. It is really quite baffaling.
Mike Watkins, Naples, Florida (Sent Apr 3, 2006 1:16:10 PM)
The bigger question is where is the insurance from the insurers? It has never been the insurance companies policy to pay the stated value. They spend hundreds of thousands of our dollars gathering information to include in the FINE PRINT! of the policies they offer as an on slot of legal red tape, big words, and confusing langauge. How is it our homes values can increase with area improvements, developments, etc. but when it comes time to pay, the Adjuster with their handy pen can devalue the area 50% or more? You pay a premium for $250.000 that what you should get. We do not pay half our premiums, so why get half it's (Stated)value?!! It's time for an Insurance Company to do just that, Pay out on what they insurer.
Beatrice Miles (Sent Apr 3, 2006 1:24:11 PM)
My place was destroyed nearly 2 years ago in Hurricane Charley (Florida), so I sympathize with anyone who did not have flood insurance from the federal agency (National Flood Insurance Program) that offers it. But the commercial insurance policies are very clear that damage from rising water (flooding) is not covered. Historically, insurance companies have NEVER covered such damage anywhere in the U.S. It is too common and too devastating. The lesson is: If you live in an area where it is possible that your home will be destroyed by rising water or a storm surge, get a policy from the National Flood Insurance Program. Read your homeowner's policy! Your policy is a contract. If insurance companies are forced to pay by means of lawsuits, it will set a precedent. In effect, it means that no contract will be binding. Think about that. Your lender could decide to triple your car payment or demand payment in full immediately - because your sales contract is worthless! The contractor you hired to build an addition can take your down payment, knock down your living room wall and then come back in a year to finish the job - or not. If you think our courts are a backed-up mess now, just wait. It also means that insurance companies will not write new policies, so your mortgage lender won't lend you the money to build or buy a new home, and businesses won't invest in an area where businesses cannot be insured. Trial lawyers will be glad to sue insurance companies on behalf of folks who didn't have national flood insurance, because they'll take two-thirds of the class action settlement and leave an even bigger economic disaster. When communities can't rebuild, business comes to a screeching halt, and unemployment goes through the roof, a small settlement (after the lawyers' take) will be cold comfort for the people who have already lost so much. Suing insurance companies is a very bad idea, being promoted by the likes of Trent Lott's brother-in-law and a couple of attorneys general who have their eyes on the governor's mansion.
Sandra Palmer (Sent Apr 3, 2006 1:27:58 PM)
I see Nationwide is as horrible as ever - they tried (unsuccessfully) to screw us over after a house fire 20 years ago, and ended up paying thousands more than they would have had to if they had dealt with us fairly. I've made it a point since then to spread the word the Nationwide is NOT on your side! The experience one of the factors that persuaded me to become a lawyer.
Sally Bunnell, East Hartford CT (Sent Apr 3, 2006 1:29:10 PM)
With hugh losses related to weather related catastrophes really states that Homeowners policies lost definitions need to be standardize nation wide as the truth in lending laws are for buying and selling homes. Also the loses needed to be spread through the country and not in a per state or area.
For the life of me I cannot understand it that it was the insurance companies that started it all. They insured the houses in harms way to begin with. When you can see the waves from your front door it doesn't take rocket science to figure that one out.
George Sica, Lake Worth, FL (Sent Apr 3, 2006 1:30:26 PM)
This story and other like it caused me to cancel all but the most remedial insurance required by law. I have decided to self-insure. I don't trust any insurance company to do the right thing. In my Constitutionally-protected opinion, the insurance industry is no better than the Mafia. If everyone in the country who could afford to self-insure did so, we could run these crooks out of business and then someone could wish THEM a "Happy Thanksgiving" as they sit in the unemployment line where they belong.
Scott Bourne (Sent Apr 3, 2006 1:38:15 PM)
My heart goes out to
all Hurricane Katrina
and Hurricane Rita victims.
Do not forget the thousands of
victims here in South Florida
from Hurricane Wilma.Including Alot of
Senior Citizens.In rentals,with friends
awaiting help to rebuild and go home
again.Mostly,roof damage causing
inside water damage and big time
mold and asbestos issues.
E Martin Fort Lauderdale,FL (Sent Apr 3, 2006 1:39:20 PM)
another beaming example of powerful corporations squeezing the little guy and choosing to litigate rather than meet their financial responsibilities; the good 'new' capitalistic way. it's a very
calculated path; how many individuals have the financial resources, time or emotional reserves to climb that legal mountain.
it's becoming a tired story; we get it from the oil companies, credit card companies, health insurers, our neighborhood banks; seems to be the norm rather than the exception among corporate America today.
it's not enough to earn a fair rate, the idea is to crawl into every American pocket and take more by deceptive practice; then place the burden on the individual to prove corporate actions unlawful. in so
many instances the judicial process is grossly influenced by the depth of pockets. these 'trusting and honorable' corporate business tactics are perpetuated by our legislators and lawmakers, who, obviously represent the best interests of their constituents. leaves the little guy with few options.
when the little guy is continually taken advantage of, with nowhere to turn, he will either fade away or fight back. the assertive individual will do his homework, researching the public record on select
unscrupulous corporations, meticulously taking names and addresses and visiting these corporate decision makers in their workplace and on the darkened streets of their home-towns where there is no hiding behind
the corporate banner.
when we loose our way concerning 'right and wrong' in society, maybe there's much to be said for creative 'schoolyard justice' concerning personal accountability for poor human behavior.
philip jewell, raleigh,nc (Sent Apr 3, 2006 1:44:27 PM)
Why is it that when I gamble, I must pay out my losses?
The insurance industry gambles, with the assistance of statistics and underwriters, that they will make money. I am mandated by the government to hold auto and home insurance - mandated to put my money on the gambling table for their play. I know they've taken losses, but where are the insurance executives reducing their incredible salaries and benefits as the big gamblers that lost the bet?
I want a list of the insurance companies hiding behind greedy lawyers. I will change my business!
David Irwin (Sent Apr 3, 2006 1:53:16 PM)
I wholeheartedly agree with the gentleman that said Nationwide is on your side. After having insurance with them for 25 years, we were dropped two days before Katrina. Wish our family luck because we are still homeless after 6 months. THANK YOU NATIONWIDE!!!!!!!!!!
Brenda Guessford, PO Box 5 Kennedyville MD. 21645 (Sent Apr 3, 2006 1:57:04 PM)
I look at the comercial on tv, YOU'RE IN GOOD HANDS WITH ALLSTATE and it makes me want to throw up. No matter how much of the fine print you read there is always something they say you missed. I dealt with the same agent for 18 years and I would not trust him again for nothing.
Carolyn Johnson, Baltimore Ohio (Sent Apr 3, 2006 1:58:22 PM)
Well, if I had State Farm or Nationwide, I would drop it and go to someone else. I'd also be sure to tell them that this is the reason why. If enough people do it, it will really hurt their business.
km (Sent Apr 3, 2006 1:59:17 PM)
My hope is everyone does get their money, but the rest of us need to do our part to help this happen. I always shop for my insurance on a regular basis. I was recently watching a State Farm add and thought of calling them. Not anymore.......... I have dealt with Alstate, and will not again.
My fear is these scummy people that run the industry will buy enough of Congress, the Whitehouse, and our courts that they become insulated from lawsuits. If you people do dnot like what thees people are doing they should look at the legislation that was ennacted that makes them think they can unilaterally do this to their customers. They should then look at who was holding the power when that legislation was passed. It will not get their money, but it might return our laws back to us.
larry Simon (Sent Apr 3, 2006 1:59:23 PM)
Yet another fleecing of America. Our administration and the insurance companies should be ashamed of themselves. I feel embarrassed for them.
Robin Hurtado (Sent Apr 3, 2006 2:00:50 PM)
Insurance companies are as crooked as a dog's hind leg, and they are more than willing to sell you a bill of goods in order to get you on their tally. Then they do a song & dance when it's time for them to pay the piper. Insurance companies need to answer to government regulation, and not their own bottom line. If they say they are going to cover your losses in the event of a catastrophe, then that should be what they are going to do, not do what they feel like when the time comes. And it's not just for damage to homes either. Auto accidents are another example, and medical claims, too. America needs to start standing up and quit being ripped off by big business, big oil, and big utilities. It's sickening what the government has allowed to happen in this country.
Pat Marren, Auburn NY (Sent Apr 3, 2006 2:01:13 PM)
I live in Jupiter Florida, we have had the eye of three different hurricane pass within 30 miles of our home in the past 2 years. Wilma went right over our heads. We have shutters & used them. We protected our home and property the best we could. We didn't file any claims for Frances or Jeanne in 2004. We have a 3% deductible and feared a claim would raise our rates. My husband and sons repaired all our damage out of pocket. With Wilma our damage was more severe and we had to file a claim. We heard all the news stories of all the insurance companies denials of hurricane claims. We were really fearful of what we could be looking at. But we were lucky, our insurance company St. Johns, they were professional and treated us fairly. Our deductible, at $5000 was still a challenge but St. Johns paid up. The scary thing is, our damage was not catastrophic. It was ugly and inconvevient, but we never had to leave our home. I think the larger the claim the harder they look for reasons to deny it. As Americans we can't let them get away with it. They collect our money like clockwork but hide from our claims. These people who lost everything are owed more. Sure hurricanes are costly and inevitable. But they can't take our money for decades of minimal storm activity then deny us during the years of increased activity. That's certainly a crime. PLEASE Lord put me on one of those juries!
S. Martin (Sent Apr 3, 2006 2:02:15 PM)
This is an empirical example that "Tort Reform" is merely a ruse. "Citizen groups" which, are typically sponsored by insurance companies, are quick to blame all their woes on "those plaintiff lawyers." However, voters then learn, after Tort Reform is passed, that not all lawsuits are "frivolous."
Adam Vanek (Sent Apr 3, 2006 2:02:55 PM)
Consumer Reports ranked insurance companies a few years back based on customer satisfaction... I think it's about time for them to update this information so that people can make an informed decision when purchasing home owners insurance. In light of the problems everyone's been having since last year's hurricanes, we went with a company that has underwritten very few policies in our area... the logic is that if a major disaster happens here, they won't have sticker shock from a large number of claims. Maybe we'll be treated like individuals instead of being lumped into a large group that is rubber stamped with "Claim Denied". But even going this route, you never have a guarantee, no matter what your policy says in writing, that the company will do the right thing. It's all one big roll of the dice.
And another thing... AllState informed us when we were shopping rates that they won't carry earthquake insurance at all starting next year. I sincerely doubt that they will go to much trouble to tell their current customers about this change. They even had the gall to tell us that they were on the "leading edge" and that all the other companies would follow their lead. Who steps in and fills the gap when the insurance community decides that covering a particular natural disaster is no longer cost-effective?
Katie, Memphis TN (Sent Apr 3, 2006 2:02:55 PM)
I'm going to try and word this the best I can.
Imagine being told if you invest in company "A" in the stock market, you could NEVER take a loss, and would ALWAYS show a profit of 10-12% per year.
You would now be an investor in an insurance company.
Not a common stockholder, but a member of the board of directors, a Major Shareholder.
You see, major insurance companies have a neat little deal. They collect premiums year after year and collect REAL profits (Not profits they show in thier yearly disclosures) of over 10 BILLION dollars a year. (They have clever "legal" ways of hiding profits and showing them as investments into the company)
Even if company "A" has claims in a year that real 20 BILLION dollars, company "A" has at least 1/2 that money in liquid assets on hand, and 10 times that amount in available credit for the other 1/2.
So why the concerns about "Bankrupting the insurance industry?"
Well, as board member "A-1" you have been told you will have a return of 10-12% per year on your investment. Nobody is going to tell you or show you different. So what happens is this. Instead of honoring your policies, you deny everything possible. You claim "Bankruptcy" as the only alternative because even though you could take loans to cover the money needed, and pay it all back next year, then start showing profits again the year after, you want your investment return THIS YEAR, and next year, NO MATTER WHAT.
It's a risk free investment. That's what insurance is. It has become this because of massive payouts, lobbying, and plain lack of democratic responsibility.
So, to finish this up. A company with the proven ability to show assets and profits of over 200 billion dollars over a ten year period should NEVER be allowed to file bankruptcy, EVER. They have a base premium group (policy holders) of "X" dollars a month that guarentees them "Y" dollars for "Z" number of years.
If as a regular everyday joe, if I tried to file bankruptcy because I had to lay out 10% of my 10 year income out in one year, and showed the proven assets and future assets the way insurers can, the judge would tell me to pay up and shut up.
Am I fundamentally wrong here?
Sorry for the spelling ;-0
G. Behrend, Anytown, USA (Sent Apr 3, 2006 2:03:09 PM)
People don't read their policies when buying their insurance. Clearly, everybody missed the big flood portion, which is always a part of the storm and the fact that the federal government actually covers it, if you buy it! Ahh...I know what happened! No one told them to buy it! It is called the National Flood Program and should be mandatory for all property owners in all coastal areas. Insurance companies should not have to bear the brunt of ignorance or lack of interest.
Luis Ruiz, Miami, FL (Sent Apr 3, 2006 2:06:37 PM)
The business relationship is always between the carrier and the agent. The insured doesn't factor into the equation. The insured is just one small piece of business while the agent represents a large block of business. The answer? Hold your agent accountable for their carrier's actions. My agents understand they will represent my interests in the event of a catastrophy. If litigation takes place they will be a target as well as their carrier.
Jeff R. (Sent Apr 3, 2006 2:08:39 PM)
Insurance used to be the "Protection Racket", shady guys coming around looking for protection money and threatening home and business owners that something bad would happen if they didn't have protection. Now with the Bushies in power, business rules and the rest of us are fools.
Pat Hess (Sent Apr 3, 2006 2:10:02 PM)
Sad for all you folks that are going through this - as an insurance purchaser on higher ground, would you name your insurance companies when you comment, so that they rest of us can know who not to buy from?
Vikki, Reston, VA (Sent Apr 3, 2006 2:10:15 PM)
It's amazing how insurance companies will raise your rates every year to cover increased costs they expect when you need to rebuild, but when it comes time for them to give you money to rebuild they look for reasons not to give you the money. Maybe it's time the American people took the insurance money invested it themselves and when a disaster strikes you wouldn't need the insurance company, you'd have the money saved and could rebuild yourself. More or less put the insurance companies out of business instead of them putting you out of your home.
Wendy Kay, South Nyack, NY (Sent Apr 3, 2006 2:14:47 PM)
Hey, take it easy on the insurance companies, they are doing their best. There is just not enough money after the tremendous operating costs. A friend of mine works as a supervisor for a major insurance company and she even had trouble with her claim until a friend at the company had it fixed. So, this has been an unpleasant experience for all involved. By the way, the house turned out beautiful.
Henry Gimlet (Sent Apr 3, 2006 2:15:26 PM)
Alas consumers are no saints either. I know of a few people who have quite happily used a small mishap in their house to generate large claims for remodeling. They claim "well i paid my isurance all these years...i'm entitled to it".
John Doe (Sent Apr 3, 2006 2:17:12 PM)
Let's face it, there are places people should not build
and insurance companys should not write policys there...if they write, they SHOULD PAY!
sTEVE dAGGER (Sent Apr 3, 2006 2:18:59 PM)
As long as insurance companies are allowed to invest policyholder's premiums in other areas such as stocks, bonds, and investments with mortgage companies, we will suffer at their hands.
They are not required to answer to the policyholders, only to their investors and their board of directors. As long as they are able, as in the case of 9-11 to swing their political powers on Capitol Hill, they will continuously have the taxpayer at their mercy. After 9-11, Congress passed the $900 billion act. Any claims in excess of $900 billion are automatically picked up by the taxpayer. Mortgage companies and insurance companies are preying upon homebuyers and homeowners. You cannot buy a home w/o insurance, as mortgage companies will not lend the money. A majority of the money that mortgage companies have to lend come from investments by the insurance companies. I wish all of you who have suits against your insurance company the best of luck.
R.C. Walters, Crewe, VA (Sent Apr 3, 2006 2:19:11 PM)
WHAT DID YOU EXPECT FROM THE INSURANCE COMPANIES. THEY WERE CROOKS BEFORE KATRINA AND THEY WILL BE CROOKS AFTERWARDS. THE ONLY WAY, AND I MEAN THE ONLY WAY TO GET THEM TO HONOR THEIR POLICIES, IS TO SUE THEM.
mike litchfield connecticut (Sent Apr 3, 2006 2:20:10 PM)
It is very sad that the government will allow the insurance to delay claims so they can earn interest on the money for as long as possible. The legitimate claims need to be paid ASAP. You cannot leave the people who paid their premiums out in the cold. This should be illegal. What would happen if you were late on paying the premium? They should be held accountable for being late on the claim! This needs to be addressed.
-marc
Marc Esparza Dallas, Texas (Sent Apr 3, 2006 2:21:54 PM)
Gee, how do I get Nationwide for my carrier?...NOT!
Johnnie Houston Texas (Sent Apr 3, 2006 2:21:59 PM)
This kind of thing is why lawyers are actually a GOOD thing, contrary to the image painted of the profession by, surprise, the insurance industry and those that it typically supports, namely republicans like our president. Recall that Mr. Bush never misses a chance to bash trial lawyers. You don't suppose he does that because it makes the insurance folks more inclined to support him? Of course that's why. It's ironic, and sad, that Trent Lott, no previous friend of the trial lawyer, and by association, the victim of storm damage or other third party harm, is now having to sue State Farm himself. I wish him well. Next time Mr. Bush or other republicans start hollering about the need for more "reform", keep all of this awful stuff in mind...more "reform" equals more ripoffs...it isn't lawyer fees and "frivolous" lawsuits, folks...
Philip M. Brown, Macon, GA (Sent Apr 3, 2006 2:22:06 PM)
State Farm and Allstate are the 2 companies that have made the worst case laws against insurance companies - even other insurance companies hate them.
Emlee Lage (Sent Apr 3, 2006 2:22:47 PM)
How can Nationwide afford all of those commericals on TV? It is cheaper than paying claims. We had a tornado come through our county in May 03'. I had business insurance with Erie Insurance. What a great company! We had extensive hail damage. They paid for a new roof and vinyl siding for my business without question. An amount of approx. $50,000 was paid for damage to my business. I have homeowners with Nationwide. My neighbors on each side got a new roof. Nationwide said no. That same year Hurricane Isabel came through Virginia and caused a tree to fall on my house. Nationwide again said no. They did pay me for 1/3 of a roof. Can you believe that? I never heard of such a thing. I can not wait to switch insurance companies as soon as I can get one to take me. You have to wait for about 5 years after claims to switch. I am going completely with Erie Insurance Co. What a company!
Jim Hix Amelia, Virginia (Sent Apr 3, 2006 2:23:20 PM)
I disagree that the insurance companies are just trying to take your money and not give you anything in return. I went through three hurricanes, (Charley, Frances, and Jeanne) during the time that I lived in FL. During that time I worked for one of the largest insurance carriers in FL. While these hurricanes are ripping through the state the employees of the company are having to wait these things out so they can get back in the office to start taking claims. I was fortunate enough to not have any serious damage and had everything fixed within a couple of months. After the hurricanes had passed I was in the office within 2 hours and on the phones with customers taking claims.
People have to understand that they are not the only one's that are having to file claims, and wondering why they haven't got a check for the damages. Just with those three hurricanes we took in about 50,000 claims. With less than 200 claims reps working 12-14 hours a day they were still trying to inspect the damages a year after the first hurricane hit. The last dollar amount that I heard for claims paid out for the hurricanes was somewhere in the 90-100 million dollar range, and that doesn't include automobile claims from the storms.
The misconception that some people have is that as long as you have that policy in your hand you are covered. Most people don't take the time to read the coverage form which is generally printed on the back of the declarations page, and select the apprpriate limits of coverage. That section will tell you what events will and will not be covered in the event of a loss. My suggestion is to purchase the maximun amount of coverage that you can get, and to speak with an agent so they can explain any questions that you may have. You may pay higher premiums, but in the long run the more coverage you have the better chance you have of getting the claim paid. People need to carefully read the exclusion section, and understand what will NOT be covered.
C. Stacey, Canton, GA (Sent Apr 3, 2006 2:24:27 PM)
I'm an independent insurance agent in Myrtle Beach South Carolina and cannot feel more compassion for the people of the stricken communities. We also have to deal with the hurricanes, tornadoes, hail, etc that affect the coastal regions. The best piece of advice I can offer anyone when purchasing an insurance plan is to READ THE ENTIRE POLICY! There are many exemptions (mold, wind-driven rain, terrorism) that most people never know exist. If you don't understand something, call the agent! If your agent doesn't have an answer, you might consider moving to a more knowledgable agency. Do not wait until something happens to find out you're not covered.
Now, do not misunderstand and think that I am blaming the innocent victims of the storm for the denied claims. I can tell you that in most cases this is exactly what happens. The adjusters' job is to save the insurance company money. Is it right? Absolutely not. Is it fair? Not even close. Read your policy! The better you understand what is covered and what is not, the easier it will be for you to defend yourself and properly cover yourself. Also, be forewarned...cheaper is not always better. If you have two "identical" policies, and one is say, four hundred dollars less...it's safe to say something is excluded that was not excluded on the other policy.
To the comment about insurance agents believing your payment is to feed our kids, or keep them in private school: this is completely unfounded. I rent a two bedroom townhome and my child attends public school. Eight out of ten agents you meet have a home worth less than the average home they insure. Please, don't confuse big business players with actual agents.
Also, concerning the FEMA flood comment...I fully believe the story of the home being occupied for thirty-three years without a flood policy. Think of everything around you that has changed in the past thirty years. Do you think the flood maps have not been adjusted? Certainly! They have been amended and mortgage companies are required to notify buyers if they are located in a flood zone, and also require the insurance. Is it a perfect system? No. Though in most cases, buyers know they are purchasing in a flood zone well ahead of time. There have been situations where this has not taken place as it was supposed to, though not everyone is perfect.
Please, bear with us as we petition our State Departments of Insurance for a better system. Most of us cannot stand to be part of the process that has evolved around us and are making every effort to change our environment!
Danielle - Myrtle Beach, SC (Sent Apr 3, 2006 2:25:31 PM)
Are there any good gun insurance companies that are actually paying claims. I would like to know who they are so I can change carriers.
Kevin S, Moyock, NC (Sent Apr 3, 2006 2:31:53 PM)
The people of the United States should all stand up and refuse to give their business to the insurance companys that are refusing to pay these claims. They didn't refuse to take the premiums from those people for years and years, did they?
They knew when they accepted the contracts that the homes were in areas that were prone to hurricanes and all of the damage that hurricanes cause. We need a list of the companies that are refusing to pay, so that we can
TAKE OUR BUSINESS ELSEWHERE!
Susie Francis (Sent Apr 3, 2006 2:33:25 PM)
I wonder what St. Peter will have to say to the executives and adjusters when they meet. Talk about bad Karma and insult to injury..........
Kurt Fisher (Sent Apr 3, 2006 2:33:39 PM)
"We the People" can change the insurance industry. We empower them by paying the monthly fees. The only way to do that is to support a better company. I think a Non-Profit Insurance Company could work if “We the People” supported one. "We the People" should get behind a company like that. Think about it an Insurance Company that really was there for you, an Insurance Company that actually paid claims. This is just an idea.
Jack Hogue, Oklahoma, Oklahoma City (Sent Apr 3, 2006 2:34:06 PM)
Anymore it makes little difference if it is a claim to pay for an insured home that was damaged in a hurricane, or a health insurance claim. The insurance companies more often than not deny the claim and hope you go away. You have to fight back and demand them to pay! What kind of a country is this when you have to get a lawyer to sue the insurance company to make good on a claim ?
jeff anaheim (Sent Apr 3, 2006 2:38:14 PM)
The tort reform movement has placed us all in a situation where the most we can do to any insurance company is ultimately recover what they owed to begin with. There is no longer any fear of the courthouse because the teeth have been removed from most state and federal laws that the insurance companies once feared. We are reaping what we sowed by electing all these right wing politicians. I hope Trent Lott gets paid in about 2015. Most everyone else I feel sorry for.
John McDowell, Houston, Texas (Sent Apr 3, 2006 2:43:40 PM)
Why do insurance companies have so much power in this country. We pay medical, homeowners, car and every other kind of insurance payments because we have to or you can't get a mortgage, register your car, get medical treatment without insurance but when it comes to getting paid for a loss - you don't and on top of that your premiums go up because you filed a claim! They must have a lot of folks in Washington D.C. in their pockets. Disgraceful
Pat Foote, New York City (Sent Apr 3, 2006 2:44:44 PM)
Just thought I would let you know that State Farm profits are in the BILLIONS above last years.
I live in the insurance capital and know how these people live....believe me they aren't hurting.
zyoose, Bloomington, Illinois (Sent Apr 3, 2006 2:45:22 PM)
Maybe they should have read the policies before signing them. Insurance is all a big pyramid scheme anyhow..
Robby B., Bergen, NJ (Sent Apr 3, 2006 2:46:09 PM)
State Farm is my insurer as well. Makes me feel like all of us who weren't hit by Katrina should boycott the insurers who are denying these claims. Maybe I'll have to start looking into switching my own coverage. The insurers who don't uphold their end of their business arrangement (unless sued) should be punished.
Kari Footland, Arlington, VA (Sent Apr 3, 2006 2:47:00 PM)
I have worked for one of the largest insurance companies for the past 6 years. My next statement may shock many people, however in my 6 years of working Auto Claims, I have never been asked to handle any claim in an unethical manner or purposely deny coverage.
Our goal is to try and find coverage. There are cases where we have to deny claims however when we do, the wording on the policy is clear and conscise.
Many Americans do not have regular insurance check ups with their Agents or companies or many feel like the Agent is just trying to make money. The Agents are the experts at what they do and their advice should be taken in a positive manner. The Agent is truly looking out for your best interest (Unfortunately I cannot speak for all).
Many people also feel that insurance companies are taking advantage of them however you would be surprised at the number of individuals feel entitled to payments when they have a claim just because they have paid their premiums on time and been with a company for a long time.
How many people file false claims, especially injury claims, on a yearly basis? How many attorneys and doctors are in on the filing of false claims? How does that make people feel?
I do not see anyone coming to the insurance industry defense on this matter. Please read your policies and follow advice that is given by insurance professionals. Do not underinsure yourself because you can lose it all in an instant.
Like many people in this country, we always look to blame somebody.
George Molina, Puyallup, WA (Sent Apr 3, 2006 2:47:36 PM)
You got it. Suing them is the ONLY way.
Look, I'm all for personal accountability. If you didn't have flood insurance AND YOU FLOODED, tough bananas. Eat your losses - you gambled and LOST.
But - how about the people TWENTY MILES INLAND who did NOT flood - and could not have? That damage was WIND related, NOT flood related.
That's a COVERED LOSS, and yet the companies play the same game.
I live in a coastal area, and am not "required" to have flood insurance. I have it ANYWAY. Why? Because its cheap for what you get, and if I flood, I am buying insurance against that risk. The risk is real and so is the premium - but on balance, its worth it.
I have no empathy for those who had no flood coverage and flooded. At all. But for those who had obvious wind damage and the companies are playing games with them, and I have friends who HAD IT HAPPEN in last couple of years - first hand knowledge here, as I was their shelter - I say sue 'em all right out of business.
Karl Denninger, Niceville FL (Sent Apr 3, 2006 2:48:33 PM)
Weather it's health insurance, auto insurance or home owners insurance, it's all LEGAL EXTORTION.
Deborah McGuckian (Sent Apr 3, 2006 2:48:56 PM)
My home flooded with 4 feet of water from Hurricane Katrina and I cannot speak highly enough of USAA. As a previous poster said, if you can get USAA - switch to them immediately! They returned my calls promptly and I even got a phone call from one adjuster saying that I was short on maxing out my coverage and if I could just think of a few more items, he could calculate them out for me. On the other hand, upon purchase of my home, I went over every possibility with USAA. When I asked if I was covered for a hurricane, they told me wind only and so I asked for flood insurance. I am with the minority here in that individuals needs to look over their policies and you shouldn't get something you didn't pay for. I know USAA would not have given me money for flood if I hadn't gotten flood insurance. I went through a pain-staking process when buying my home and ensuring it was properly insured for all possibilities. I even clarified what hurricane coverage meant and I was told 'wind only' so I then asked for flood insurance. We need to ask the right questions and ask for help if we don't know.
Chris, Slidell, LA (Sent Apr 3, 2006 2:51:10 PM)
Blah Blah Blah.. The big bad insurance company.. gee, you think from listening to everyone whining about things that insurance companies were non-profit organizations.. need I remind you that they aren't. If you live on the coast and build a straw house in the middle of hurricane alley and then don't buy BOTH flood and wind coverage.. then don't whine about the way your claim is settled or expect the rest of the country to buy you a new home.. wind is wind.. flood is flood.. and stupid is as stupid does.
Josh Nelson (Sent Apr 3, 2006 2:51:20 PM)
Seems to me that those people (most of us) who could never afford a house on the beach shouldn't have to pay increased insurance premiums so that rich people can rebuild. If you are rich and stupid enough to build a house on the beach, you should be forced to rebuild on your own.
Greg Ziglar (Sent Apr 3, 2006 2:51:22 PM)
I did note in the article that the insurance companies had paid out more than 8 BILLION DOLLARS in claims in Mississippi alone - so it doesn't appear that they are just arbitrarily deciding to not pay claims - there appear to be some real differences of opinion as to the cause of the losses that were denied -this article was only from the side of the people who had claims denied. Some may have been wrongly denied and maybe a few even fraudulently denied, but probably not all of them. We live in Southern Alabama and EVERY day during hurricane season ads run on the television advising people down here to get flood insurance even if they don't live in a "flood zone" as anything can happen!! I can't understand not having flood insurance if there has already been a hurricane in the past that caused a house to flood.
The courts will decide the cases based on the language in the policies (not emotions) and even if juries at the lower court level find for the insureds, when the cases are appealed, most will be overturned in favor of the insurance companies because everything will boil down to the contract language at that level.
Emlee Lage (Sent Apr 3, 2006 2:52:09 PM)
Most of these are comments are without reason. We all sympathize with those who suffered loss, but people, instead of pursuing the lowest cost insurance, maybe take a moment to actually look at what you need and pay for the correct coverage. So much heartache could have been avoided if people would have simply looked at the fact they were at a risk for flooding and took out a flood policy. Or simply avoided living on a coastline knowing that a hurricane will at some time wipe you out. Insurance cannot cover everything because it would be unaffordable if it did. Could you imagine the added expense if flood and earthquake were suddenly added to the home policy?
To say that insurance does not pay is ridiculous. The vast majority of people who have claims are paid promptly and adequately. Do problems arise? Of course, but the media loves to focus on the minority of policyholders who have issues as it sells copy and generates attention. Whether we like it or not, the policy is written to exclude flood loss and can not be changed after the fact.
By the way, flood insurance is a federally controlled program that is only serviced by insurance companies. Insurance companies do not make any policy decisions in regards to it and the industry has been trying for years to get Congress to modernize the program.
B Randall, SD (Sent Apr 3, 2006 2:54:36 PM)
It seems to me that insurance companies should be joining in the rest of the country to help these people out. Every statement going out right now should tell people that their payment this month is going directly to Katrina Relief. It should give the option of donating. Why can't the companies simply help people by giving them back every dime they've ever paid into their policy? I don't know much about operating a business, but these things seem like pretty small things to help people who are in need. I think it's very clear that at the very least, we all need to be praying, and giving of ourselves. It's easy to point fingers at insurance companies, but who of us has actually been of help to these people?
Rochelle, Grove City, PA (Sent Apr 3, 2006 2:54:45 PM)
Insurance Companies are like Politicians, To get what they want they will pat you on the back, lie to you, Pick your pocket and when your down, Stomp you in your face. I am 66 years old and from experience I know this for a fact. If any of you scum bags read this you know what you can do.
Pete Royal (Sent Apr 3, 2006 2:56:02 PM)
This is no surprise. As another person posted earlier, I also went with only the minimum required by law on insurance. I feel like this...Why pay to these big insurance companies what I could be saving myself. Especially when they can choose whether or not to pay a claim. Think about this...what if all these lawsuits really do put a big company like Nationwide out of business? What happens to those people who have been paying insurance premiums for years? Basically their insurance is no longer valid and available and all that money they paid to that company is gone. I've had friends who went with smaller insurance companies for car insurance that went belly up and they were forced to go to another company with all that money they paid in going belly up with that insurance company. It's like buying a dead horse. Why do it? I also have a family member who can't even get insurance. She has been turned down by every one she could afford and the one's that do approve her have rates so high she can't afford them. We live in a state that requires insurance. What about those that can't get it much less afford it? I feel like if they are going to make us have it then they should have these insurance companies have a basic policy that is available to everyone at the same price.
AJ Can, Florida (Sent Apr 3, 2006 2:56:24 PM)
Rita victims are quite similar to those of the Mississippi Gulf Coast. We owned a beach home on the coast of Southwest Louisiana. Our insuror, Louisiana Citizen's Coastal Fair Plan, has determined the very same scenario as those in Southwest Mississippi. "All damages were directly related to storm surge". There is absolutely no factual evidence that this premise is true. In fact, the National Weather Service in Lake Charles, LA specifically stated that hurricane winds topping 125 mph were blowing for 12 hours in advance of the rising water. Let alone the more than 62 tornadoes reported by some weather services that struck the area (some reports are over 140 tornadoes). How can any person in his right mind tell me with a clear conscience and a true heart that only surge did the damage? How can this very weak and hateful determination justify claims denial??? It sickens me to think that an industry can weild such power and victimize an area that has already suffered so much. Then to top it all off, our premiums escalated 170% last year due to immense losses in Florida! Ironic, I'd say! One day, a reaconing may come to their houses, I sure hope they have the "proper" coverage then! No defense attorney can help them then my friends!
Bewildered, Lafayette, LA (Sent Apr 3, 2006 2:56:55 PM)
I will be curious to see the outcome of these litigations; much sympathy for those who have been affected by Katrina. I would also be curious to know how many were offered coverage for such perils but declined because they didn't feel something like this could happen, or, they didn't want to pay the extra premium. Property on or near the coast faces different exposure and risk than other property and should be properly insured, regardless of how a property is zoned.
Dan Smith, Decatur, IL (Sent Apr 3, 2006 2:57:10 PM)
The remarks of Stacey and Danielle are also worthy of respect....it's not 100 percent the insurance industry's fault, for sure....
Philip M. Brown, Macon, GA (Sent Apr 3, 2006 2:57:17 PM)
Let's face it, the insurance industry is full of corporations held by private stock holders. They are there to make a profit, not lose money. The only way to change this is state sponsored insurance. I am not an advocate of this, but maybe it solves all our insurance ills. Truth be told, everyone who buys insurance better have the wherewithall to understand that flood is not covered - not here in Seattle, or in Hurrican stricken New Orleans. If you want coverage, pay for it. Now everyone else in the country gets to pay for insurance claims to those who choose to live in Hurricane zones. I for one, live in Washington were there are not Hurricanes. I chose a house on the hills to avoid flooding and volcano lahars. I do live in an Earthquake zone, but I pay for supplemental earthquake insurance. Not cheap, but I don't want to come crying to all the hard working Americans who live outside the earthquake zone when my house is destroyed in the big one. I feel for the devistating losses suffered in the South, it was painful to watch on TV, I donated to the Red Cross. We live in America where we are supposed to have the chance to make our own lives. Unfortunately in situations like this, most are forced to pay for the choices made by others - so who is the real victim. The person who lived in a known hurricane zone, by the coast under a flood wall - or the person who mitigated his losses, yet still gets to pay? Something to think about while you write your homeowners check next year.
David S, Seattle, Wash (Sent Apr 3, 2006 2:59:42 PM)
In 2004, Hurricane Charley destroyed 35% of my S. Florida housel An adjuster came 10 days later & 10 months later my house was better than new when we reoccupied!Nationwide Insursance did it ALL!They even obtained the contractor!!Can't beat that for coverage!!
Barry Snider Port Charlotte FL (Sent Apr 3, 2006 3:03:03 PM)
When the insurance companies exhibit a consistent pattern of trying to delay and deny claims to save money, the CEO should be arrested on racketeering charges. The american people do not have to sit by idly and watch their brothers and sisters be mistreated by corporations.
Ken, Tampa, FL (Sent Apr 3, 2006 3:03:22 PM)
To a dying breed...where are the "safe" zones to live in? West Coast? Earthquakes & Fire. Midwest? tornadoes. East Coast - hurricanes, blizzards. Insurance companies insure the risk and we all buy insurance gambling that nothing serious will happen to us. When it does? We have insurance? Or do we?
God Bless my family and friends recovering from Katrina and all of those wonderful people that continue to help out!
Cheryl Rohde, Fox River Grove, IL (Sent Apr 3, 2006 3:03:33 PM)
Check out The Hartford Ins. Co. According to C. Reports , It is the best paying of all Ins. companies. From experience, State Farm and Allstate is sorry!!!!
Floyd Royal (Sent Apr 3, 2006 3:04:16 PM)
The whole point of insurance is to put you at the same position that you were at the time of loss.
Chantel Turner, Warner Robins GA (Sent Apr 3, 2006 3:08:10 PM)
I live in Northeast Florida and my roof was extensively damaged last year. I called Allstate, who has been my carrier for over twenty years, who sent an adjustor out. They made me an offer based on a $100 a square (100 square foot of roof). $100 a square isnt enough. Try finding a roofer after a storm for a $100.00 a Square.
They did cut me a check for about 75 percent of the repair cost. I will say that I have my house appraised every year and adjust all my insurance values accordingly. I also bought replacement value which did help a lot.
In talking with the adjustor, part of the problem was that many people were simply underinsured. Property values have gone up so fast around here that many people were amazed when the checks were so low.
The one thing that did disturb me was an attempt to charge a separate deductible for each storm. We were initially told we would have had to pay three deductibles if the Florida Insurance Commissioner hadnt made things clear.
Overall Allstate didn't do a bad job for us. However, Any company is going to interpret the contract to limit their out of pocket cost. It creates a situation where there are long delays for people who cant afford them. Maybe the answer is to have insurance commission hearings on classes or types of claims for disasters and if the company unfairly persists in denying a claim approved they pay double
John Marbles (Sent Apr 3, 2006 3:08:55 PM)
It has been 20 years since I had a bad experience with Nationwide and just the name sets me off. I had uninsured motorist coverage on my car and when it was hit by an uninsured motorist, Nationwide would not send an adjuster to appraise the damages. I had to have a lawyer contact them and threaten them with a loss of faith law suit. Only then did they send an adjuster out to the auto body shop and when they sent the check, they mailed it to the lawyer and not me. Nationwide is not on your side. Any time I am asked about insurance coverage I always tell the person who not to get.
Donna Dugas, Johnston, RI (Sent Apr 3, 2006 3:09:36 PM)
I see nothing happening here that's unexpected. After all, almost all insurance companies business models are designed around the idea that their policies will be pu