Devoted to the Insurance industry and all thing related

As I’m sure you’re already aware U.S. Senator Trent Lott lost his seaside home in Pascagoula Mississippi to Hurricane Katrina.  Shortly after the storm Lott’s insurer State Farm let him know they wouldn’t be paying his claim due to the standard flood exclusion in his homeowners’ policy.  He did however collect on his flood insurance policy, which of course wasn’t enough to pay for the full value of the home.  

In light of all this Lott sued State Farm and has been their biggest thorn in the side for the past year-and-a-half.  The blog A View From The Press Box brought up the idea of Lott having been better off if he had used an independent agent instead of a direct writer.  The agent might have recommended that Lott purchase excess flood coverage to cushion the impact of having to rebuild his house with his own money.

To be blunt here, if you live in a hurricane prone area then you have to face the possibility that your home will be completely destroyed.  Lott should have taken the necessary precautions and learned more about his homeowners’ policy or at least had someone on his staff look into it.  I can’t imagine a more important part of living on the beach than knowing you have sufficient flood insurance.  
    I also don’t feel sorry for him because he has the money to rebuild his home.  If you live on the coast chances are you’ve got some money and we all know that U.S. Senators are rarely from the poor house.  It’s too bad that the many homeowners affected by Katrina who didn’t have flood insurance or excess flood insurance can’t use their political muscle to make life miserable for State Farm and the property and casualty insurance industry.