Allstate Accuses Homeowners of Fraud to Avoid Paying Katrina Claim

In the wake of Katrina’s devastation, insurance companies have been trying every trick in their thick tome of lies, dodges, denials, and legal skulduggery to avoid paying out what they owe Gulf Coast homeowners, but Allstate seems to have hit a new low even for an insurance industry which was pretty well down the bottom of the list to begin with. They’ve tried – with some unconscionable success – to claim that wind damage which they have to pay off on was actually water damage which they don’t. That’s bad enough, but now Allstate is accusing some homeowners of fraud.

For the second time in as many federal insurance trials in Louisiana, Allstate Insurance Co. has alleged that the homeowners bringing suit have committed fraud, and has asked for the case to be dismissed.

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WaPo Slams Bush for Holding Up Katrina Funds

Fred Hiatt, WaPo editorial writer, must be reading this blog.

LOUISIANA IS in a bind. Nineteen months after hurricanes Katrina and Rita decimated its economy, slashed its tax base and hobbled its workforce, the state is struggling to get back on its feet. Every dollar of redevelopment money is vital. That’s why there have been consistent calls on President Bush to waive the 10 percent local match requirement on projects using money from the Federal Emergency Management Agency. And just as consistently, he has refused. Why is this 10 percent match, which local governments have to pay upfront, so important? Let us explain.

When disaster strikes, FEMA stands ready with financial aid. The agency is absolutely right to demand that states share in the expense of cleanup and recovery. Under circumstances deemed “extraordinary” and with damage assessments above $110 per capita, FEMA can shrink that burden from the customary 25 percent to 10 percent. But the president has the authority to waive even that requirement in the event of major catastrophes. Mr. Bush did this for New York after the horrific Sept. 11, 2001, terrorist attacks (damage: $390 per capita).

Although Fred seems to have allowed his sense of humanity and justice to over-ride his usually-reliable loyalty to Bush for this one time, he still can’t bring himself to admit that Junior also waived the requirement for Florida after Hurricane Andrew when his brother Jeb was Gov.

Come on, Freddie. As long as you’re out on a rare truth-limb anyway, you might just as well tell it all.

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