Flood Insurance News

Nationwide Sued for Hurricane Damages

At a glance:

A group of 243 policyholders are suing Nationwide Insurance in a lawsuit similar to those against State Farm and Allstate.
 
Portions, or all, of their damage claims from Hurricane Katrina were denied on the basis of "storm surge" damage which is considered flooding, as opposed to "wind" damage, which was covered.
 
The plaintiffs claim that it was the wind that destroyed their homes, and that the policies were misrepresented as "all-risk", in some cases with agents claiming they did not need additional flood insurance.
 
Damages, interest, and compensation are requested.


243 policyholders sue Nationwide

Biloxi Sun Herald - 5/26/2006 4:25 AM

Nationwide Mutual Insurance Co. faces a lawsuit filed Thursday by 243 policyholders who claim they were fraudulently denied coverage for Hurricane Katrina damage.
 
The lawsuit says Nationwide reeled in customers with the promise of "all-risk" coverage, including a "hurricane deductible." The company then refused to pay the policyholders for most, or in some cases all, Hurricane Katrina damage, the lawsuit says.

 
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