Insurance companies basically sell security. A consumer is willing to pay insurance premiums in the expectation that if something bad happens—a house burns down, a car crashes—the company will pay for the loss that otherwise might financially ruin the consumer.
I had homeowners (wind/hail) through USAA, I also purchased my flood coverage through USAA. After Katrina I had a slab and pilings left. The National Flood Insurance policy paid off fairly quickly. Concerning my Wind/Hail coverage, USAA sent me a letter saying “Where there is no coverage, no payment can be made”. I decided to fight them. I attended the State Ins. Dept. sponsored arbitration, where USAA offered my about ten cents on the dollar. I signed an impasse statement and did not accept their offer. I hired my own experts (structure and weather) and kept the pressure on USAA. Approaching the 3 year anniversary of Katrina, USAA sent me a check for the full insured value of my home with no explanation. I lost the interest on the payment for three years
Now for the complete denial. This from team USAA last October:
“This ruling is a good decision for USAA as well as for Mississippi homeowners,” said USAA spokesman Paul Berry. “Each key position USAA put forth was affirmed by the court.”
Those positions are:
• The court endorsed USAA’s claims-handling policy in Hurricane Katrina. USAA paid for damage caused solely by wind but did not pay for damage caused by storm surge.
• The court affirmed USAA’s legal argument that a jury should decide what losses, if any, were caused by wind, and what losses, if any, were caused by flood………
USAA already has paid the Corban’s for damage caused solely by wind and for damages covered by their flood policy….
If that is the case then why did they tender in March? That koolaid they serve over San Antonio must be laced with Mescaline.