Insurance Crisis Creeps North
By
The Associated Press
Published: Tue, January 08, 2008 - 11:53 am
Last Updated: Tue, January 08, 2008 - 11:56 am
Last Updated: Tue, January 08, 2008 - 11:56 am
homeowner policies for about 6,000 of its customers in south
Louisiana if they aren't able to demonstrate that their
storm-damaged homes are occupied and are being rebuilt.
State Farm spokesman Gary Stephenson said says the company's
goal is to work with homeowners customers that want to stay in
Louisiana and rebuild.
The company began inspections last April of homes and apartments
that generated 75,000 claims following hurricanes Katrina and Rita
in 2005. The company said it has inspected 50,000 so far in an
effort expected to continue through August.
State Farm wants to make sure that people are indeed using their
claims checks to rebuild, so that the company isn't stuck with the
extra risk of insuring vacant or poorly maintained homes. Homes
that are abandoned are at higher risk for claims because of fires,
vagrants, water pipe leaks, theft or vandalism.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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I too am upset about the increases in premiums and the cancellations, but insurance fraud also causes our rates to go up. I know of people who did not use the claim money to repair damage and then claimed the house again when they could. They get $30,000 or $40,000 dollars and spend it on other things. The when the house burns they claim it again for the total sum of the house, which may have been nothing but a shell. This cost us all.