Poppinjay

It's like Godzilla versus Mothra, who do you root for? Senator Lott is suing State Farm because they refuse to pay up for the devesation of his house from Hurricane Katrina. State Farm's point is that their insurance doesn't cover flooding, and they maintain that Lott's home disappeared in a storm surge (there is nothing left, only a concrete slab). They also maintain that flood re-imbursement is supposed to come from Lott's employer, the federal government. Lott and most of his neighbors did not have the federal flood insurance.

http://www.sunherald.com/mld/sunherald/13419725.htm

We lived in hurricane alley for years, and our local communities REQUIRED we get flood insurance. But, since Lott had the choice, I guess it was his decision.

This is a joint lawsuit, and if it suceeds, State Farm will be in a world of financial difficulty.

So, should the Big Bad Insurance company pay out some ching after years of taking in millions for accidents that never happen, or should the Big Bad senator lay off and eat the expense for the good of the economy?

One aspect I do like, he's suing for $74k, not some outrageously inflated number. I would have to guess his house was worth far more than $74k.

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dksuddeth

the insurance industry is a government endorsed scam to bilk the populace of money and needs to be done away with.

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pan6467

I'd always heard that insurance companies didn't insure on floods or "acts of God" (i.E. tornadoes, lightning strikes etc.) unless you bought supplemental insurance those for purposes.

I heard this every time there was flooding along the MIssissippi and people were losing everything because they couldn't afford the supplemental insurances.

If Lott chose not to get the insurance it's his own fault.

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I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"

kutulu

Yep. I've been saying that for a long time. The govt is always there to cover them if their payouts from a disaster are so large that it would destroy them. The govt doesn't get shit in return for that.

Call me a socialist but I think it's past the time for the govt to become the insurance provider. Either that or they need to regulate the industry the way that utilities are regulated. We've come to a point in time where insurance (including health care), like utilities is a basic need for all people.

maximusveritas

"It's sue, sue, sue... That's not the answer" - Trent Lott
Apparently it is the answer when his own ass is on the line. Funny how that happens.

BTW, Poppinjay, where did you get that "he's suing for $74k"? It looks to me like he's suing for full coverage, well over $75K. Not only that, but he says he's doing it to set a precedent for more lawsuits which could severely hurt the insurance industry. I don't have a problem with that, but it flies in the face of everything he used to stand for, which is why he's being opposed by Governor Barbour on this.

Cynthetiq

Utilities aren't regulated in most states anymore. Hence Enron was able to do what they were able to do.

I thought that insurance was a highly regulated business.-

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martinguerre

this is one of those object lessons in "read your damn policy."

it's not just the disadvantaged folks to NOLA, but a Senate Majority Leader that apparently lacks the ability to read and understand. I've lived most of my life well outside flood zones, and i know that flooding is not covered by standard homeowners insurance.

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rsl12

I'm sure someone will have more facts than I, but this is very short-sighted thinking. From what I understand, the fed does offer cheap flood insurance in certain flood-prone areas, and lots of assistance after a disaster. What this means is that people build *more* houses in disaster prone areas, because the govt is taking on so much burden of the risk.

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Poppinjay

I read in another article that it was right at $74k. I may be misinformed.

In Lott's defense, his policy did cover wind damage and had a specific mention of catastrophic storm reimbursement. I read about this in the Wall Street Journal while at lunch today and am searching for backup.

His home is gone, who's to say if it was wind or a surge? As far as the topic of flood insurance, he should have had it. I always did. If it was optional for eastern North Carolina in the Floyd days, the area would be destitute because hardly anybody would have paid for it.

__________________
I think the Apocalypse is happening all around us. We go on eating desserts and watching TV. I know I do. I wish we were more capable of sustained passion and sustained resistance. We should be screaming and what we do is gossip. -Lydia Millet

Ustwo

Many many moons ago, we had a huge rainstorm and my parents discovered their their house was on top of a hill surrounded by a flood plain. The basement cut into the hill and was flooded with about 6 feet of water.

The insurance company was not going to pay for the damages because it was an 'act of god' until we were also able to show that the power was out and the sump-pump didn't work. They then gave full coverage.

Of course the power going out was also an act of god, and the sump-pump would have been pumping water into about 8 feet deep water around the hill, plus the bluk of the water came in through some doors, but that didnt' matter to the claim.

My guess this is a situation where Lott thought he was covered, perhaps even was told he was by the sales guy, and really wasn't.

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pan6467

Funny how the Right blames the lawyers and lawsuits for everything but when they need them they are the first to use them.

Kinda like how Limbaugh also ragged on the ALCU until he needed their lawyers.

It'd be a very Karmic irony if his suit gets thrown out because of some lawsuit reform law he helped pass.

__________________
I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"

j8ear

I'm guessing Lott will argue that his house was destroyed by a hurricaine, which is a covered occurance, instead of the insurance company designation of a flood.

I've heard similar grunblings about home owners insurance coverage in New Orleans.

-bear

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Hardknock

Agreement all around.

Ustwo

Ah is that the heart of it?

My feeling is a storm surge is part of the huricane, so I wouldn't be surprised if he anothers won.

__________________
Agents of the enemies who hold office in our own government, who attempt to eliminate our "freedoms" and our "right to know" are posting among us, I fear.....on this very forum. - host

Obama - Know a Man by the friends he keeps.

flstf

As I recall the insurance on the houses I have owned had flood and earthquake coverage as options. I always assumed a flood wasn't covered no matter what caused it.

genuinegirly

Stupid politician.

Suck it up and deal with it. You're on your own out there. That's what America is all about. The government isn't going to step in and fix things, even the judicial branch. When rebuilding is concerned, it's all about private organizations like Red Cross and Habitat for Humanity.

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Seaver

I agree with him, those insurance companies need to be held accountable.

Storm Surge = rise in water level caused by a Hurricane (100% chance surge will occur).

How is this not Hurricane damage?