Evidence of Insurance Companies Defrauding the National Flood Insurance Program (NFIP)

Evidence of Insurance Companies Defrauding the National Flood Insurance Program (NFIP)

State Farm directs Wind and Water Damage Claim be sent to NFIP only.
Barely two weeks after Katrina's hurricane force winds blew through the Gulf Coast, State Farm distributed a memo directing its claims adjusters and engineers to direct the wind and water-based property damage claims to the National Flood Insurance Program only. On page two of State Farm's memo dated September 13, 2005, the company stated the following.

Damage to Property Caused by Flood Waters with available Flood Policy Where wind acts concurrently with flooding to cause damage to the insured property, coverage for the loss exists only under flood coverage, if available. State Farm Water/Wind Protocol Memo, 9/13/05. See page 2.

Outside the radar of the American public's eye, the company essentially gave itself a taxpayer funded bailout. This unintended taxpayer-funded bailout was not a single nor isolated incident.

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