Can anybody remember another tropical storm path like Fay's? The
WeatherUnderground is an excellent site for the current status and history or Fay. I have a deposition in the
Port of New Orleans vs. FM Global case on Tuesday in New Orleans. I am trying to figure out how to get there.From an insurance standpoint, we are fielding calls from policyholders regarding various issues. The hurricane deductible does not apply because Fay is not a hurricane. A $250 deductible versus a 5% deductible of a $200,000 policy limit can make a big difference. Pools seem to be popping all over the east coast of Florida. "Pool popping" cases can be difficult to collect upon because many residential policies specifically exclude losses caused by water exerting hydrostatic pressure on swimming pools. Many people drain their pools to keep water from overflowing into the house. Unfortunately, the reduction in weight and the severe pressures of water soaked into the ground literally causes pools to pop-up, destroying the pool. Rain water accumulating on the ground becomes surface, or groundwater, that is also often excluded as a loss. Yesterday, a claims manager from a major insurer was in our offices and he predicted that many claims would be denied based on these exclusions. I agree. The contention will be what airborne water came into the home through the roof, walls, and windows versus surface water seeping into the structures under doors. Insurance controversies will never cease. Following Katrina, we predicted the major fight was going to be wind damage versus excluded flood damage. With Fay, I am pretty certain we can predict what many controversies will be before the adjusters start their work.
