On November 12, 2009
State Farm Backed by Federal Court in Wind Versus Water Case
As ex-Tropical Storm Ida chugs up the East Coast with flood water surging in on the Atlantic states, insurers like State Farm, Allstate and Travelers bask in the warm glow of a federal court decision this week backing their version of what happens when a major storm hits the U.S. Property insurers such as State Farm pay claims based on wind damage. Water damage payout comes from the federal flood insurance program, which offers only limited coverage. Not surprisingly, when a hurricane hits homeowners like to put in a claim with their private insurer because they pay more. Also not surprising, these insurers try to duck and dodge whenever possible, claiming that water was responsible rather than wind. That’s exactly…
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