State Farm Lawsuit

The state’s homeowners’ assistance program was used to provide financial assistance to Mississippi homeowners after Hurricane Katrina. Proceeds from this state program and payouts from the national flood program were used to help coast homeowners rebuild after the storm.
Mississippi Attorney General Jim Hood is accusing State Farm of using these programs wrongfully to get out of paying their policy holders money to rebuild.
“The federal government has a federal flood program that covers flood and so State Farm would send in their engineering firms or their adjusters and get them to dump it off on those taxpayers,” said Hood.
State Farm insurance policies cover wind damages, but not flood damages.
Through what is called “concurrent causation”, State Farm was able to say damages to houses and property were ultimately caused by floods and not high wind speeds. This got the insurance company off the hook for payouts they owed their policy holders.
“They wouldn’t pay what they should have for wind and made us taxpayers, our taxpayer money go to pay for damage that was actually done, that they should have insured,” said Hood.
“The fact of the matter is it is very difficult to be able to justify the kind of capital that needs to be spent to rebuild, to build new homes, to build new facilities, to build new businesses because your costs are going to continue to be too challenging to meet,” said Lt. Governor Tate Reeves.
Coast homeowners aren’t the only ones looking at high costs.
The state is dealing with a hefty bill from the storm, a bill out Attorney General hopes the lawsuit will eventually force State Farm to pay.

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