The insurance company covers wind damage but water-related damage, such as from rising flood waters, is not covered. The insurance company is being sued by a number of Gulf Coast inhabitants who claim that State Farm destroyed documents which showed that the initial damage to houses was caused by the hurricane winds. If true, the big insurance company has picked the wrong place to attempt such a scheme since one of the policy holders who is claiming fraud is Senator Trent Lott. Can you imagine how little exposure (and success) this story might receive if the senator was not also involved?
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