I know that in other states, if there is a covered loss to the insured property, you don’t take the deductible from the ALE. Do you mean to say that in Texas, in these cases, if the ONLY “covered” loss is the ALE, then the policy deductible doesn’t apply?
Steve
Hate to burst your bubble, but the court did not issue the indictments againt Mr. DeLay, a grand jury did. The Texas Legislature delegated the power to investigate political crimes statewide to the Travis County District Attorney. This was done over 10 years ago, when Democrats ruled the state, Gov. Lt. Gov., and both houses of the state capitol.
The District Attorney has proscuted more Democrats than Republicans over the years, he is regarded by both parties in the local area as fair and honest.
I am neither a republican or a democrat, I have no pre-set position on this case. However, I do know how Mr. DeLay forced his will on the citizens of Texas with a mid-decade redistricting of congressional seats.
As for the court decision, the original issue was the residents were prevented, by force majuer (greater force) from returning to their homes because of storm damage to roads, etc. Their homes suffered damage from power outages, wind, wind-driven water, and the residents were not able to take any steps to control or mitigate damages. The judge wanted to make sure policyholders were not punished for governmental (force majuer) actions.
Another example of the corrupt Austin judicial system where the courts can add coverages to your policy. What a surprise, this is the same court system that indicted 3 people for violating campaign funds laws that did not go into force until after the alleged infraction. I would love to see DeLay out, but in an honest way.
SW Insurance Institute just about covered the problem in their comments. It’s time for our governor to step up and call this just what it is libeeral politica from biased liberal media. After 30+ years in the insurance business, I am still constantly amazed by the ineptness of our insurance commisioner. Have they ever considered appointing a property and casualty insurance agent to this job?
Just like California and the wildfires or landslides. Regardless of whether or not someone buys the coverage(s) needed OR the policy contract excludes it, courts rule to make insurers pay anyway. What happened to the contract? Why bother?
The real question is; when all of these fools are done giving everything away they can, who will be left to pick up the pieces? Do they care? No, what feels good or makes them look good today is all that they care about. We have to get back to what is right and what is wrong, what is moral and what is immoral, etc. and make decisions based on contracts and the best interest of everyone, not just some.
The problem is that Texans saw insurance companies, the Red Cross, and FEMA, under a lot of pressure, hand out tons of money to the Hurricane Katrina victims, no questions asked. My cousins-in-law (one a partner in a BIG NO law firm, the other a psychiatrist) received their $2000 FEMA stipend AND had their two week stay at the Houston Omni comped. Their house received a small amount of damage to the back porch when a tree limb fell on it.
Naturally, many Texans, after evacuating due to Rita, felt that they were entitled to the same. They were shocked, SHOCKED, to learn that Allstate wasn’t going to hand out money hand-over-fist like they did for Katrina.
The fact that the ALE for a forced evacuation isn’t a covered peril under the TX HO policy doesn’t matter. If LA evacuees can get money, so can Texans.
What pisses me off (sorry all you faint hearts) is that the judge sets the next hearing date so far out that he guarantees that Allstate has to pay the claims that it will probably not end up legally owing, and have no way to recoup the money without creating a public relations disaster.
Maybe what needs to happen is for ISO to create a new HO policy form, and accompanying pricing models, that makes everything conceivable from any disaster, natural or man-made, covered, including flood due to storm surge, poorly planned housing developments and idiots who won’t buy flood insurance in areas where at least once a year there is a devastating flood in a place “that has never been flooded before”. Then, have the big carriers withdraw the current HO forms they use, and file these “new and improved” forms.
But even if Allstate is being forced to cover the ALE, won’t the deductible on each policy wipe out most of the payments? They’re being forced to pay ALE because of “hurricane damage” or inconvience, whatever is politically correct to force payment…so wouldn’t the hurricane deductible apply? Unless the evacuees are staying at the Ritz Carlton for the two weeks after the hurricane displaced them, Allstate shouldn’t have to pay all that much, right? (Not that they should have to pay anything to insureds whose homes weren’t damaged)
Good question. But, which deductible applies? The windstorm deductible is pretty hefty; a percentage of the insured value. On the other hand, the non-windstorm deductible isn’t all that big, comparatively.
Since the ALE claim is not the result of windstorm damage to the insured property in a lot of these cases, but due to forced evacuations, damage to other property, no power, no water, unsafe conditions, etc., one argues that the lesser deductible applies.
Hotels were charging the max rack rate to non-Katrina people. Plus, there are increased meal costs from eating out, laundy expenses, extra gas costs for longer commutes, etc. After a week, you’ve got a claim well in excess of the non-windstorm deductible.
So yeah, Allstate may end up paying a lot more than you would think.
Unfortunately for Allstate, the deductible doesn’t apply for ALE. This is one of those Texas things. At least this is how it’s been done in the past, no tellin’ how they do it now.
Ronnie Earle persecuted(and occasionally prosecuted) Democrats years ago when we were a one party state. He persecuted Senator Kay Hutchinson all the way to the courthouse step then folded his tent in mid trial. I am a moderate republican who does not like Delay’s extreme partisanship but this case appears headed the same way. Yes, the Grand Jury indicited him. THE FOURTH GRAND JURY after the others would not go along with Earle. Earle has had a movie crew following him around the last two years hoping to document Delay’s downfall. He has bragged at Democtatic fund raisers that he would bring Delay down. This is not an unbiased champion of justice.
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I know that in other states, if there is a covered loss to the insured property, you don’t take the deductible from the ALE. Do you mean to say that in Texas, in these cases, if the ONLY “covered” loss is the ALE, then the policy deductible doesn’t apply?
Steve
Hate to burst your bubble, but the court did not issue the indictments againt Mr. DeLay, a grand jury did. The Texas Legislature delegated the power to investigate political crimes statewide to the Travis County District Attorney. This was done over 10 years ago, when Democrats ruled the state, Gov. Lt. Gov., and both houses of the state capitol.
The District Attorney has proscuted more Democrats than Republicans over the years, he is regarded by both parties in the local area as fair and honest.
I am neither a republican or a democrat, I have no pre-set position on this case. However, I do know how Mr. DeLay forced his will on the citizens of Texas with a mid-decade redistricting of congressional seats.
As for the court decision, the original issue was the residents were prevented, by force majuer (greater force) from returning to their homes because of storm damage to roads, etc. Their homes suffered damage from power outages, wind, wind-driven water, and the residents were not able to take any steps to control or mitigate damages. The judge wanted to make sure policyholders were not punished for governmental (force majuer) actions.
Another example of the corrupt Austin judicial system where the courts can add coverages to your policy. What a surprise, this is the same court system that indicted 3 people for violating campaign funds laws that did not go into force until after the alleged infraction. I would love to see DeLay out, but in an honest way.
SW Insurance Institute just about covered the problem in their comments. It’s time for our governor to step up and call this just what it is libeeral politica from biased liberal media. After 30+ years in the insurance business, I am still constantly amazed by the ineptness of our insurance commisioner. Have they ever considered appointing a property and casualty insurance agent to this job?
Just like California and the wildfires or landslides. Regardless of whether or not someone buys the coverage(s) needed OR the policy contract excludes it, courts rule to make insurers pay anyway. What happened to the contract? Why bother?
The real question is; when all of these fools are done giving everything away they can, who will be left to pick up the pieces? Do they care? No, what feels good or makes them look good today is all that they care about. We have to get back to what is right and what is wrong, what is moral and what is immoral, etc. and make decisions based on contracts and the best interest of everyone, not just some.
The problem is that Texans saw insurance companies, the Red Cross, and FEMA, under a lot of pressure, hand out tons of money to the Hurricane Katrina victims, no questions asked. My cousins-in-law (one a partner in a BIG NO law firm, the other a psychiatrist) received their $2000 FEMA stipend AND had their two week stay at the Houston Omni comped. Their house received a small amount of damage to the back porch when a tree limb fell on it.
Naturally, many Texans, after evacuating due to Rita, felt that they were entitled to the same. They were shocked, SHOCKED, to learn that Allstate wasn’t going to hand out money hand-over-fist like they did for Katrina.
The fact that the ALE for a forced evacuation isn’t a covered peril under the TX HO policy doesn’t matter. If LA evacuees can get money, so can Texans.
What pisses me off (sorry all you faint hearts) is that the judge sets the next hearing date so far out that he guarantees that Allstate has to pay the claims that it will probably not end up legally owing, and have no way to recoup the money without creating a public relations disaster.
Maybe what needs to happen is for ISO to create a new HO policy form, and accompanying pricing models, that makes everything conceivable from any disaster, natural or man-made, covered, including flood due to storm surge, poorly planned housing developments and idiots who won’t buy flood insurance in areas where at least once a year there is a devastating flood in a place “that has never been flooded before”. Then, have the big carriers withdraw the current HO forms they use, and file these “new and improved” forms.
But even if Allstate is being forced to cover the ALE, won’t the deductible on each policy wipe out most of the payments? They’re being forced to pay ALE because of “hurricane damage” or inconvience, whatever is politically correct to force payment…so wouldn’t the hurricane deductible apply? Unless the evacuees are staying at the Ritz Carlton for the two weeks after the hurricane displaced them, Allstate shouldn’t have to pay all that much, right? (Not that they should have to pay anything to insureds whose homes weren’t damaged)
John,
Good question. But, which deductible applies? The windstorm deductible is pretty hefty; a percentage of the insured value. On the other hand, the non-windstorm deductible isn’t all that big, comparatively.
Since the ALE claim is not the result of windstorm damage to the insured property in a lot of these cases, but due to forced evacuations, damage to other property, no power, no water, unsafe conditions, etc., one argues that the lesser deductible applies.
Hotels were charging the max rack rate to non-Katrina people. Plus, there are increased meal costs from eating out, laundy expenses, extra gas costs for longer commutes, etc. After a week, you’ve got a claim well in excess of the non-windstorm deductible.
So yeah, Allstate may end up paying a lot more than you would think.
Unfortunately for Allstate, the deductible doesn’t apply for ALE. This is one of those Texas things. At least this is how it’s been done in the past, no tellin’ how they do it now.
Ronnie Earle persecuted(and occasionally prosecuted) Democrats years ago when we were a one party state. He persecuted Senator Kay Hutchinson all the way to the courthouse step then folded his tent in mid trial. I am a moderate republican who does not like Delay’s extreme partisanship but this case appears headed the same way. Yes, the Grand Jury indicited him. THE FOURTH GRAND JURY after the others would not go along with Earle. Earle has had a movie crew following him around the last two years hoping to document Delay’s downfall. He has bragged at Democtatic fund raisers that he would bring Delay down. This is not an unbiased champion of justice.