Recently, New Orleans CityBusiness criticized Allstate, Nationwide and State Farm for selling as much as 95% of all federal flood insurance policies. Allstate, Nationwide and State Farm Considering are "raking in unearned profits at the expense of taxpayers" by shifting wind damage costs to the federal government.
CityBusiness argues, the “Multiple Peril Insurance Act” will lift the burden from property owners who now have to hire lawyers, engineers and adjusters to prove to insurers that wind, not water, caused damage. CityBusiness acknowledges that the proposal isn’t a complete fix to the problem, but it should make it harder for insurers to rip off or scam taxpayers.
Maybe so, but insurance companies own the legislature and will likely tighten their grip on government if the both houses of the legislature become Republican. In time, they’ll beat the system
Editors, New Orleans CityBusiness, 06/18/2007