Here's what I think....F--- You State Farm!, you take the risk but abandon ship when you have to pay.


Nov. 5, 2007, 4:53PM
State Farm Faces Katrina Trial in La.

By MICHAEL KUNZELMAN Associated Press Writer
© 2007 The Associated Press








NEW ORLEANS — A jury heard opening statements Monday for the first federal trial in Louisiana against State Farm Insurance Cos. for a policyholder's lawsuit over Hurricane Katrina damage.
The eight-member jury will be asked to decide whether Katrina's wind or floodwater was responsible for demolishing the Port Sulphur home of Michael and Judy Kodrin, who sued State Farm for denying their claim after the Aug. 29, 2005, storm.
"That's going to be the main issue in the case," U.S. District Judge Carl Barbier told a 30-member jury pool.
State Farm, which says its homeowner policies cover damage from wind but not rising water, concluded Katrina's storm surge destroyed the Kodrins' house and denied the couple's claim.
The Kodrins, however, argue that hurricane-force winds destroyed their wood-frame home hours before water overtopped a nearby river levee and flooded their Plaquemines Parish neighborhood.
"When the water filled up like that, the game was already over," John Redmann, an attorney for the Kodrins, said in his opening statement.
State Farm attorney Ryan Acomb said there's an "honest dispute" over the cause of damage to the property. He urged jurors to be guided by evidence and not let sympathy for the homeowners cloud their judgment.
"We don't know of any witnesses to what happened to the home during Hurricane Katrina," Acomb said. "All you can go by is the circumstantial evidence."
The wind-versus-water debate at the center of this case also was the central issue in several federal court cases State Farm already has faced in Mississippi.
In January, a federal jury in Gulfport, Miss., awarded $2.5 million in punitive damages to a couple who sued State Farm for refusing to cover Katrina's storm surge damage to their Biloxi home. A federal judge later reduced the award to $1 million but said State Farm acted in a "grossly negligent way" by denying the policyholder's claim.
This week's trial, which is expected to last several days, isn't the first Katrina insurance case heard in federal court in New Orleans. In April, a jury awarded more than $2.8 million in damages and penalties to a Louisiana man who sued Allstate Insurance Co. over storm damage.
Bloomington, Ill.-based State Farm, the nation's largest property insurer, also is Louisiana's largest residential property insurer, writing 32 percent of the policies in the state in 2006.
Louisiana policyholders filed several hundred lawsuits against State Farm after Katrina. Company spokesman Jeff McCollum said four of those cases have been tried in state courts and decided by judges, but the Kodrins' suit is the first to be tried in federal court.
Michael Kodrin, a marina manager before Katrina hit, was expected to testify Monday afternoon. He and his wife moved to Raceland after the storm.
Katrina reduced the Kodrins' home to rubble; only their mailbox and rear steps were left standing. These so-called "slab" cases are among the most contentious of Katrina claims, because experts are left with little physical evidence to help them determine if wind or water caused the damage.
The Kodrins say a State Farm adjuster initially told them that wind apparently caused most of the damage to their home. Later, however, an engineer who inspected the property for the insurer concluded that storm surge destroyed the house.
The Kodrins estimate that Katrina caused a total of $341,745 in damage to their property. State Farm says the market value of the property is only $110,000.
A separate flood insurance policy already has paid the couple $76,000, but they are seeking an additional $207,086 from State Farm for damage to their home, its contents and their living expenses.

Once in a while, even big, bad State farm gets it's a$$ kicked. A settlement over generic parts usage cost them millions, and caused them to quit requiring the use of generic parts in auto repairs. I have seen them regress lately to their old way of doing business,, refusing to pay legitimate claims, and just dealing in bad faith.

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95 SL500 Smoke Silver, Parchment 64K
07 E350 4matic Station Wagon White 34K
02 E320 4Matic Silver/grey 80K
05 F150 Silver 44K

Why does it matter? Certainly anyone who lived in these areas knew enough to have flood insurance in addition to their normal homeowners, right?

Right?

Please tell me that these people are only debating which policy pays, right?

Not that anyone would be so stupid so as not to be insured against all threats? People couldn't really be sueing their insurance companies and expecting them to pay for a home that was never covered because they didn't get seperate flood insurance. No one would ever try to drain the pockets of a big company for anything like that would they?

I know evidence of what caused the destruction might be hard to come by, but there are experts in this sort of thing, if they say it was water and not wind, why would anyone expect the insurance company to pay? It couldn't just be that people who didn't want to pay for additional insurance before the event want the coverage afterwards right?

I suppose we'll have to wait and see... Me? I hope the insurance companies don't get held responsible for these peoples shortsightedness.

/ State Farm customer
// over-insured for things just like this
/// spend all my money on insurance instead of things that need insured...

MV

The only people that are stupid are the ones that think that insurance companies pay on claims without a fight.

That depends on the loss. I've only had to play hard with one carrier in my life, for a car accident (property damage only).

I had a fire loss a couple of years ago, and American Family paid with no fight at all.

Never had to fight with my insurance company.

And in the auto repair business, they don't seem to offer much in the way of a hard time. I'm usually upset when I see them paying for things that aren't related to the recent accident. They say it makes customers happy, so they allow a little leeway.

They paid my parents homeowners claim without much of a hassle, even went too far we thought, but the policy did say they would pay for new carpet from the affected area to the next hinged door. Parents house has several pocket doors. We thought they were going above and beyond.

And my personal agent, they stay late after work to meet with me outside of my normal work hours. And call me a half hour before I show up to ask what I like on my pizza.

Maybe it's like cheese, and you're just doing it wrong.




MV

I'd give anything to be on that jurry, I hate insurance companies. I'd have a ball trying to screw State Farm as much as possible.

Everytime I have delt with an insurance company over a car related matter, they have tried to screw me. They always paly hard ball so I do as well.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

no flood insurance and living below sea level.not a good combination!

No flood insurance? Read the story again.

Homeowners insurance is for sissy-losers that haven't paid their homes off. And no, I don't insure my paid-for home. There's no law that sez you have to insure your home, either. People that carry homeowners insurance are weak in the mind and wallet, --wimps..

If you haven't figured-out that paying homeowners insurance premiums are a scam in 2007.........there's no hope for you...... I'm convinced the stupid people in America want to stay in their rut, anyway.......no surprise here..........

Good idea, lets put it back on track.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

So if your house was to burn down, you would rebuild it out of pocket? Is it not cheaper to hedge your bet with insurance, vs having to pay quite a bit out of pocket to rebuild?

A cheap basic raised ranch costs $150k-170k to build up here. So for something more complicated you can spend $300k-$500k out of pocket.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Drop the JimmyL stuff, OK? ....and who cares about dial-up? The dude(s) couldn't produce an ice dam in Texas, I'm in Texas, have been for 30 years.......and I'm in construction, (architectural end) self-employed......he was BSing you guys up North. They do not exist in Texas. .......he was--(Lying)

Who said anything about re-building? I'd raze it, sell the lot, and move........likely to a much nicer neighborhood. A lot further South......gets too cold in North Texas....... I've been in my home 22 years. Most of my stock is in Berkshire-Hathaway, Inc., Omaha, NE. my hometown --we are insurance. I understand the odds. Insurance company sez: ''you need us.'' I say: ''no I don't.'' --I'm self-insured.....bring it on..

I don't like throwing money away on something I'll likely never use.

As moderator of this forum its my job to keep a close eye on what goes on. Naturally new members draw my attention for various reasons, that are to long to go into here. I don't know who you are, or do I really care, I have better things to do. So for now lets drop the subject.

Anyway back on topic, makes sense I guess it depends on your situation.

Like the argument of paying off your house vs mortgaging it to the hilt and using the money for other investments.

Either approach has its pro's and cons.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Insurance has it's purpose - it's not a con game. Too much insurance, and you're a fool wasting money. Too little insurance, and you're just a fool. The moral of the original post? Don't do business with State Farm - despite the wonderful marketing campaign.

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- Brian


1989 500SEL Euro
1966 250SE Cabriolet
1958 BMW Isetta 600