Posted On: August 24, 2006, 4:31 pm CDT

Posted By: Insurance Executive

I am by no means a fan of Senator Lott's however in all fairness we must recognize that he did have flood insurance on his property. What he is seeking is compensation for damages beyond the limit of the flood insurance policy because his home sustained wind damage prior to the flood damage. The problem with that is that the wind damage cannot be quantified because in many places there is only a slab left to inspect for an insurance carrier. Scuggs team makes a novel argument that but for the damage caused by the wind the water would not have caused such extensive damage. It has some merit but damages still can't be quantified. What can an insurance carrier do in that situation other than rely upon the opinion of experts. If the experts are less than credible or being manipulated to report something other than the truth they should lose their license to practice their profession. I find it somewhat disconcerting that in the midst of this disaster executives at some of the major carriers have been permitted to walk away with golden parachutes and retirements. They may never have to testify regarding their actions related to this matter but their reputations will be stained with the demise of their credibility in the eyes of their employees and colleagues.