$2.8M Katrina verdict against Allstate

[Firecat]

http://news.yahoo.com/s/ap/20070416/...rina_insurance

The verdict included a $1.5 million penalty for the company's failure to pay the claim quickly enough

I think that's rather excessive.

from another article....

The Weisses, who already have collected $350,000 from their federal flood insurance policy, had a separate Allstate homeowner policy with limits of $343,000 for the dwelling and $240,100 for personal property.

The company, blaming the majority of damage on Katrina's storm surge, only paid them $29,483 for structural damage and $14,787 for additional living expenses under their homeowner policy. Insurers say their policies cover damage from a hurricane's winds but not its rising water, including wind-driven surge.

I couldn't find any place where they mentioned a value for the home.

[jayhawk]

Glad I do not have Allstate! Though my State Farm insurance rose about 1%.

[nomix]

When big corporations 'steps on the common man', they should lose money on it. At least, that's what I think.

[Bizness]

Originally Posted by jayhawk

Glad I do not have Allstate! Though my State Farm insurance rose about 1%.

so did mine..and I live in Canada

[tigger]

Originally Posted by nomix

When big corporations 'steps on the common man', they should lose money on it. At least, that's what I think.

I'd agree. Insurance companies especially seem to enjoy shafting people.

[KaJuN]

This story pleases me. I hate insurance companies with an undying passion and it makes me feel good to see one of them on the receiving end of the bad news. They seem to be willing to do anything to screw you out of money. I don't think there's anything wrong at all with them being charged for not delivering the money fast enough. That's the service their customers paid for; the same customers who get charged out the butt if they don't get their payment to Allstate fast enough.

It always baffles me as to how insurance companies can get away with paying out so little on claims. They paid out less than $45,000 for a $580,000 policy. Then they're pissed off about being sued? Wow!

I just love this part when the lawyer is trying to give a reason for not paying their share:

She said Weiss already had received more than $400,000 in insurance payments — including $350,000 in federal flood insurance.

Um yeah, that's what an insurance policy is for lady. You get money if something bad happens. Just because he took out another policy doesn't mean you don't have to pay up on your end. That's something that Allstate clearly doesn't understand in this case.