Five major insurance companies were sued on Thursday by Mississippi Attorney General Jim Hood, who charged that insurance adjusters attempted to cheat Hurricane Katrina survivors out of millions of dollars in homeowner’s claims.
According to Hood, adjusters for Nationwide Mutual Insurance Co. and others asked policyholders to sign forms that acknowledge they sustained flood damage, which is not covered by homeowners insurance.
Adjusters are cajoling victims to sign the forms, saying they are necessary to receive an immediate check for living expenses. Then the companies can use the sentence regarding flood damage against policyholders later, Hood said.
Hood named Nationwide Mutual Insurance Co., State Farm Fire and Casualty Co., Allstate Property and Casualty Co. and United Services Automobile Association as defendants.