Little Lump of Mushy Cardboard

With the emerging clarity of historical perspective, the effects of the catastrophe wrought by Tropical Storm Allison are coming into sharper focus. Damage assessments become more accurate. Loss figures more exact. Most information continues from the big picture point-of-view, however.

Of course, that sort of sweeping statistical data is necessary for understanding the magnitude of the disaster—some $5 billion in total damages; $1.2 billion in insured damages; at least 15,700 homes damaged; etc. And there are reports of philanthropy and volunteerism—among the best attributes of the human character. Nevertheless, as in any catastrophe, the real stories are those of experiences that have impacted folks on a personal level.

Such tales will bubble up bit-by-bit to be rendered in print. No periodical could ever hope to report even a fair sampling, yet the Houston Chronicle has begun. Two stories, with a particular bearing on matters of insurance and both used here with permission, follow.

Shannon Buggs in the July 2 issue, writes in part :

“A man I know owned a 1952 Mickey Mantle rookie baseball card that he bought in 1960 for $40. To protect one of his most valued possessions, the man kept the card in a safe-deposit box at the downtown branch of a Houston bank.

“Three weeks ago, floodwaters gushed inside the bank and seeped into the man’s and many other safe-deposit boxes. Now, what was a mint condition collectible capable of fetching $40,000 in today’s market is a little lump of mushy cardboard.

“The man, who asked not to be identified, has both homeowner’s and flood insurance. He figured one of the policies would reimburse him for the financial loss of the baseball card and other valuables in the safe-
deposit box.

“He assumed wrong.

“Banks are not responsible, and his homeowner’s insurance, like all others in Texas, does not reimburse policyholders for flood damage. And it turns out, his federal flood policy does not cover damaged items stored somewhere other than the home.

“The only option left for this man and anyone else with an uninsured casualty loss is to file for a tax deduction.” Ms. Buggs then goes on to discuss such deductions.

Houston attorney Ron Lipman also writes in his Q&A column July 2.

“Q. During Tropical Storm Allison, a very large, old tree in my neighbor’s yard fell over onto my property and knocked a large hole in the roof of my garage. The tree just came up out of the ground during the flood and fell over. Is my neighbor liable for the damage?

“A. If your neighbor knew the tree was diseased, decayed, dead or in an otherwise dangerous condition prior to the storm, then he can be held liable for the damages.

“It sounds like your neighbor’s tree was particularly healthy. If the tree did pose an unreasonable risk of harm to your property, then your neighbor should have either had the tree removed before the storm or taken some other steps to prevent it from falling over during the storm.

“If the tree was unhealthy, your neighbor’s insurance carrier should pay for the damages. On the other hand, if the tree was healthy, and the only reason it fell over was because of the flooding, then your neighbor will not be liable. Instead, liability for the repairs will rest in your hands. Fortunately, though, your homeowners’ insurance policy will likely cover the damages.”

Topics Flood