Tropical Storm Lee is making its way through the Southeastern U.S. bringing torrents of rain and the fear of widespread flooding. On its heels is Hurricane Katia, which has forecasters baffled as to where it will be heading. Lee made landfall over the weekend, inundating Florida, Georgia, Mississippi and parts of Louisiana with water. The storm will put strain on an insurance industry that is already reeling from the passing of Hurricane Irene last week and has many worried whether the industry can handle another flood disaster. Flood insurance is…
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FEMA requests money back from disaster victims
FEMA, the Federal Emergency Management Agency, admits disaster payments to unqualified applicants were largely their own fault. As a consequence of employees who did not completely understand eligibility rules made accounting errors, thousands of people were paid disaster relief money between 2005 and 2009; now they’re getting a bill from FEMA, wanting their money back. Victims of floods, tornadoes, wildfires and earthquakes that received help from FEMA as far back as 2005; may be getting a bill from FEMA. After discovering that there had been improper payments made, FEMA began looking into…
Read MoreRecent ruling sets presidence for future drywall lawsuits
A recent ruling by a Florida judge may set precedence for other possible lawsuits. A Florida couple sued their home insurer for refusing to pay for repairs needed after contaminated drywall used to build their home ruined electrical wiring, air conditioner coils and pipes. The insurance company, based in Springfield Illinois, argued that the damages weren’t covered due to the “wear and tear” clause, and the “defective materials” clause. The judge deemed that the drywall material wasn’t defective because it could serve its function. However, because the drywall material also…
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