I am replying using my experience in NC. In NC all of the carriers exclude wind and hail in coastal counties. I would think it’s the same in LA. The wind and hail must be purchased through the state wind and hail pool. Maybe they (lawyers) are using the term â€Åâ€ŔActs of God†(as we know is not exclusion in a HO-3 policy anyway), to still some how get the HO-3 policy to pick up coverage (don’t know how, because the wind example they used would be excluded anyway). This might just get the state bankrupt if they are not using reinsurance or the lawyers may just be biting the hand that feeds them,…the people of LA.
In any event, the lawyer can’t make any money if FEMA pays the loss like it was designed to. Maybe the lawyers have lost a lot of revenue since the Katrina and want to keep their litigation skills polished or it’s worth a shot since they don’t have the work right now anyway
Both State Farm and Allstate provide the “wind, hurricane, and hail” coverage in the New Orleans area. State Farm has a market penetration of 35% and Allstate has a market penetration of 25%.
If these insurance companies and others are made to pay for the flood damage, the results will be catastrophic. You will see lead insurers leaving states all together, because they will not be able to absorb these cost. Also, this will scare the little insurers into leaving the states. The result may be a state program and excess insurers with rates the average consumer will not be able to afford.
Then LA politics are as corrupt as FL politics.
It amazes me, the audacity of pandering politicians, laying blame on the only non-taxpayer subsidized industry that will enable the economic recovery of a disaster-struck area. With insurance proceeds, hotels and restaurants reopen, homes are rebuilt. (Well maybe not those who chose not to purchase the unbelievably cheap flood policies.)
You have it exactly right, but you can bet the farm that the La. Commissioner will ORDER the companies to pay for flood in EVERY case where there is no Flood Insurance.
As usual, the insurance industry had troops on the ground issuing checks before the bureaucrats decided there was a disaster.
I’ve been in insurance for over 30 years and I’ve never seen a commercial property form or homeowners form that referenced “an act of GOD” though I have seen many tghat excluded flood completely.
This has answered a tough question: How will the politiicans that failed the people of Louisiana and Missippi deflect blame?”
You are in N.C. This is La. you talking about. I have been a claims manager for 12 plus years in La. It doesnt matter what the policy or the laws are here. What matters is if you know the Judge and if you contributed to his campaign fund. That is all. La. law is a different world on its own.
I live in earthquake country and I don’t carry earthquake insurance. If my building goes in an earthquake, it’s no one’s fault but my own. When we choose to live in hazardous areas, we also have to accept the consequences. I hope the insurance companies don’t back-down or we might as well throw out all insurance contracts. If this succeeds, it’s bound to generate new exclusions and definitions!
The facts are a hurricane came upon the shore of the gulf coast.
The victums which were in the path of such a destructive storm should receive the insurance which they are intitled and have paid for.
The grey line is quite simple. The actions of Katrina were not attributed to a human inperfection. Thus, insurance should cover such.
As for the folks which experienced the destruction due to neglection in New Orleans. I believe Mr. Bush attributed the blame on himself, and his administration. Thus, he is not God therefore his declaration of blame would be the place the “blame” n of human error. So, in this readers opinion Mr. Bush took the high road and took the responsiblity off of the insurance companies. I wonder…………how political was that action?
It was not political suicide, but another opportunity Mr. Cheney and his associates to pick up more contracts on the tax payers money.
Cynthia, I’am not clear on what you’re trying to say.
Indeed insureds should receive payments on policies that they paid for. If their wind, flood, and excess flood carriers all chip in, they should be ok. If they chose to buy only one of three, tough!
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I am replying using my experience in NC. In NC all of the carriers exclude wind and hail in coastal counties. I would think it’s the same in LA. The wind and hail must be purchased through the state wind and hail pool. Maybe they (lawyers) are using the term â€Åâ€ŔActs of God†(as we know is not exclusion in a HO-3 policy anyway), to still some how get the HO-3 policy to pick up coverage (don’t know how, because the wind example they used would be excluded anyway). This might just get the state bankrupt if they are not using reinsurance or the lawyers may just be biting the hand that feeds them,…the people of LA.
In any event, the lawyer can’t make any money if FEMA pays the loss like it was designed to. Maybe the lawyers have lost a lot of revenue since the Katrina and want to keep their litigation skills polished or it’s worth a shot since they don’t have the work right now anyway
Both State Farm and Allstate provide the “wind, hurricane, and hail” coverage in the New Orleans area. State Farm has a market penetration of 35% and Allstate has a market penetration of 25%.
If these insurance companies and others are made to pay for the flood damage, the results will be catastrophic. You will see lead insurers leaving states all together, because they will not be able to absorb these cost. Also, this will scare the little insurers into leaving the states. The result may be a state program and excess insurers with rates the average consumer will not be able to afford.
Then LA politics are as corrupt as FL politics.
It amazes me, the audacity of pandering politicians, laying blame on the only non-taxpayer subsidized industry that will enable the economic recovery of a disaster-struck area. With insurance proceeds, hotels and restaurants reopen, homes are rebuilt. (Well maybe not those who chose not to purchase the unbelievably cheap flood policies.)
You have it exactly right, but you can bet the farm that the La. Commissioner will ORDER the companies to pay for flood in EVERY case where there is no Flood Insurance.
As usual, the insurance industry had troops on the ground issuing checks before the bureaucrats decided there was a disaster.
I’ve been in insurance for over 30 years and I’ve never seen a commercial property form or homeowners form that referenced “an act of GOD” though I have seen many tghat excluded flood completely.
This has answered a tough question: How will the politiicans that failed the people of Louisiana and Missippi deflect blame?”
but was caused by a man made neglect?
Global warming angle?
You are in N.C. This is La. you talking about. I have been a claims manager for 12 plus years in La. It doesnt matter what the policy or the laws are here. What matters is if you know the Judge and if you contributed to his campaign fund. That is all. La. law is a different world on its own.
I live in earthquake country and I don’t carry earthquake insurance. If my building goes in an earthquake, it’s no one’s fault but my own. When we choose to live in hazardous areas, we also have to accept the consequences. I hope the insurance companies don’t back-down or we might as well throw out all insurance contracts. If this succeeds, it’s bound to generate new exclusions and definitions!
The facts are a hurricane came upon the shore of the gulf coast.
The victums which were in the path of such a destructive storm should receive the insurance which they are intitled and have paid for.
The grey line is quite simple. The actions of Katrina were not attributed to a human inperfection. Thus, insurance should cover such.
As for the folks which experienced the destruction due to neglection in New Orleans. I believe Mr. Bush attributed the blame on himself, and his administration. Thus, he is not God therefore his declaration of blame would be the place the “blame” n of human error. So, in this readers opinion Mr. Bush took the high road and took the responsiblity off of the insurance companies. I wonder…………how political was that action?
It was not political suicide, but another opportunity Mr. Cheney and his associates to pick up more contracts on the tax payers money.
Cynthia, I’am not clear on what you’re trying to say.
Indeed insureds should receive payments on policies that they paid for. If their wind, flood, and excess flood carriers all chip in, they should be ok. If they chose to buy only one of three, tough!