This article describes different risks that homeowner policyholders face
After Katrina, many homeowners who had not purchased federal flood insurance tried to recover under their homeowners insurance policies for flood claims that were specifically excluded. Consider State Farm’s account of its response to Katrina, widely considered to be the largest deployment of resources.
Claims
State Farm assigned more than 5,600 employees and contract adjusters to the Gulf Coast after the hurricane, and its call centers logged 1.1 million calls from customers. It processed more than 295,000 property claims and 99,000 auto claims, for which it paid $3.6 billion. Although its conclusions were contested by policyholder advocates, a study of State Farm’s response by the Mississippi Department of Insurance found that the company “did make errors”, but it found no violations of the unfair claim practices laws. As insu




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