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Posted on June 20, 2007 by JP Smith

State FarmIs it possible that State Farm had engineering reports rigged to avoid paying Hurricane Katrina claims. That’s what one lawsuit is alleging. The suit contends that State Farm, in collusion with two engineering firms, engaged in a “pattern of racketeering” to deny coverage to homeowners seeking relief from the hurricane’s damage.

This suit was brought on behalf of homeowners in the Mississippi Gulf Coast region and claims that State Farm attempted to have the damage attributed to flooding, not the hurricane:

Scruggs’ 103-page lawsuit claims State Farm engaged in racketeering by procuring “scientifically dishonest” inspection reports and conducting “sham re-inspections” of homes so that damage could be falsely attributed to Katrina’s flood water.

State Farm and other insurers say their homeowner policies cover damage from wind but not rising water, including storm surge.

The bottom line is that this game-playing has gone on long enough. These people deserve to be made whole and somebody, even if it’s our government, needs to make this happen.

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