High-Powered Lawyer Richard “Dickie” Scruggs Goes After Insurance Companies In Wake Of Hurricane Katrina
The Insurance Journal article I read shed some light on the intricacies of the insurance policies that are being fought over. The conflict is over “wind vs water damage” to flood victims homes. The articles states:
“For thousands of homeowners without flood insurance, the critical question is whether damage was caused by Katrina's 145 mph winds or by the wall of water that surged to shore. Wind damage is covered, but insurers say their policies do not cover damage from water, including wind-driven water. Policyholders argue that storm surge should not be considered flooding.” Some of the top insurers in Mississippi say they settled between 82 percent to 96 percent of claims within the first 6 months. Scruggs has an insider to the insurance industry who sends him documents showing “insurance companies are pressuring engineering firms to alter their reports on storm-damaged homes so claims could be denied.”
The whole situation is sad and upsetting that so many people lost their homes in the first place. Read the article for yourself to better understand the situation. I just hope Scruggs has good intentions as do the many insurance companies.
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