Nationwise Mutual Insurance — Denied coverage to policyholders in cases where Hurricane Katrina reduced a home to a slab
Nationwise Mutual Insurance is a huge insurance company based in Columbus, Ohio. They have been in business for many years and have built a big and expensive skyscraper downtown. It is a prominent part of the Columbus skyline. But, before you buy insurance from this company, read this consumer alert posted on 14 July 2006 at WBNS TV website.
An executive for Nationwide Mutual Insurance said in court this week that his company has denied coverage to policyholders in cases where Hurricane Katrina reduced a home to a slab. Jeff Gilbert is an associate property claims director for the Columbus-based company. He says in cases like that engineers couldn't find evidence to prove whether wind or water caused the damage. He says homeowner's policies cover damage from wind but not from flooding. Zach Scruggs is an attorney for a homeowner suing Nationwide. He argues the company can't deny a claim if they can't figure out what caused the damage. The Mississippi court case could set precedent for homeowners suing their insurers over Katrina damage.
Would you want to think that your insurance company would do this to you?