Exactly why insurers don’t want to write insurance on coastal/beachfront accounts. It’s been proved over and over and over what storm surge does, but the courts continue to rule for these kind of antics.
I participated on a mission trip to Ocean Springs 1 year after Katrina. We also drove into Biloxi and New Orleans. There was a distinct change in the damage I saw that was clearly attributable to storm surge (mostly in Ocean Springs) and flooding in New Orleans. Biloxi, however, you could tell that it was primarily a wind event. 3-4 story structures completely blown through with just the shells remaining.
In my opinion, if the loss was in or close to Biloxi, it was most likely a wind event. Further east or west, it was likely storm surge. Allstate, and other carriers should have been able to tell the difference.
Unfortunately, depending upon the flood exclusion language, ensuing water damage is still excluded, however caused or whatever order it was caused (wind first vs. flood first). Even if there is coverage for the wind loss, how much can be attributed to that cause of loss compared to the flood damage?
Well, State Farm had a lot of trouble down there denying claims when they said it was flood and should be excluded. They also got killed when they didn’t have re-insurance and had to eat all the claims they eventually had to pay.
How did the claimant’s attorney get more money than all the other parties involved?
Go figure!
Exactly why insurers don’t want to write insurance on coastal/beachfront accounts. It’s been proved over and over and over what storm surge does, but the courts continue to rule for these kind of antics.
Antics? It’s called FRAUD and State Farm participated in it.
I participated on a mission trip to Ocean Springs 1 year after Katrina. We also drove into Biloxi and New Orleans. There was a distinct change in the damage I saw that was clearly attributable to storm surge (mostly in Ocean Springs) and flooding in New Orleans. Biloxi, however, you could tell that it was primarily a wind event. 3-4 story structures completely blown through with just the shells remaining.
In my opinion, if the loss was in or close to Biloxi, it was most likely a wind event. Further east or west, it was likely storm surge. Allstate, and other carriers should have been able to tell the difference.
Unfortunately, depending upon the flood exclusion language, ensuing water damage is still excluded, however caused or whatever order it was caused (wind first vs. flood first). Even if there is coverage for the wind loss, how much can be attributed to that cause of loss compared to the flood damage?
Well, State Farm had a lot of trouble down there denying claims when they said it was flood and should be excluded. They also got killed when they didn’t have re-insurance and had to eat all the claims they eventually had to pay.