Mississippi is suing State Farm Insurance for millions of dollars the state lost because the insurance company “maliciously” denied Hurricane Katrina claims for wind losses while the federally funded Homeowners Assistance Program (HAP) picked up the tab.
Your ” Good Neighbor”, State Farm Insurance, in effect converted a program designed to help Mississippians who were devastated financially by Katrina into a subsidy for itself,” the a new law suit filed by Mississippi Attorney General Jim Hood.
The lawsuit details State Farm’s efforts to minimize wind losses, first by characterizing Katrina as a “water” event covered by the National Flood Insurance Program. State Farm coerced engineering firms to alter reports, then ceased ordering damage reports altogether, when engineers found wind covered under its policies caused homeowner losses, the lawsuit spells out.
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