FEMA Denies Asssistence

While Jackson residents may have received denial letters from FEMA in the weeks following the April 4 tornadoes and storms, they may still be able to get aid. Some residents were denied aid by FEMA because they were already insured.

“By law, we cannot duplicate what insurance already covers or pay for deductibles,” said Michael L. Parker, FEMA’s federal coordinating officer in a statement. “But in some cases, if insurance did not cover all your losses, we may be able to help. Residents who need help making ends meet can visit the FEMA/State Disaster Recovery Center at Willie Morris Library on Old Canton Road to discuss insurance claims and advice after getting their insurance settlement papers.

FEMA will cover hotel costs while homes are uninhabitable or inaccessible if insured victims’ policies do not cover temporary living. Other items such as septic tanks and wells, not usually covered by insurance companies, may be covered by FEMA.

MEMA director Mike Womack believes that they should try to talk with FEMA workers about help. “Even if you have insurance coverage, don’t wait for a settlement before registering with FEMA,” he said. “If you wait for your insurer to act, it may be too late to register for federal assistance. The filing deadline is July 27.”

Insurance Companies Jump On Homeowners

Four insurance companies are offering wind coverage in the South Mississippi market, although restrictions apply.

Mississippi Insurance Commissioner Mike Chaney said he has recently approved the "surplus-lines" companies. Surplus-lines companies insure high-risk properties without state regulation of rates or any guaranty in case of insolvency.

They have been active for years in South Mississippi's commercial market, but are now beginning to pick up homeowner customers as well.

The companies are Ironshore, Scottsdale, Republic and Foremost.

Ironshore is offering wind coverage for commercial properties built to code and FEMA elevations.

Scottsdale offers wind coverage to homeowners 2 miles or more from the Mississippi Sound.

Foremost offers wind only for mobile homes in Stone, Pearl River and George counties, a company spokesman said. Foremost policies without wind are available in all six South Mississippi counties for mobile homes and specialty dwellings. A Republic representative could not be reached to comment on its policies, and insurance agents contacted were not familiar with the company

These companies are basically betting that there will not be another Katrina-like storm for many years. They saw a chance to bolster their profits and make the investors happy. Yes, it is good news that homeowners now have an insurance outlet, but the better news is to the companies that will charge high premiums and pray for a slow and quiet hurricane season.

MS Gulf Coast: Wind v Water

The Mississippi Supreme Court has agreed to decide how an insurance policy should be interpreted in a wind vs. water dispute over Hurricane Katrina claims.

In Corban vs. USAA, Long Beach policyholders argue the insurance company should cover wind damage to their property, regardless of damage caused by water. Water damage is excluded from coverage. USAA and other insurers argue that policy language also excludes coverage for a combination of wind and water.

The Supreme Court is expected to resolve the issue before the case goes to trial in Circuit Court.

The 5th U.S. Circuit Court of Appeals has sided with insurance companies, finding that policies bar coverage when wind and water act in sequence to destroy property. The Supreme Court is not bound to follow the federal appellate court's ruling, however, because state law governs insurance contracts.

We will see just how much influence the Insurance companies have over the state Supreme Court. My guess is that it has considerable pull within the state's highest court.