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Allstate Prevails in Texas on Hurricane Claims

January 26, 2006 by Jonathan Stein

A judge in Texas has ruled that Allstate does not have to pay for additional living expenses for people who had to move from their homes due to power outages. According to the Houston Chronicle, Allstate only has to pay for additional living expenses for people who suffered direct damage to their home from the storm.

This makes sense. The policy covers you for damage to your house. It does not cover you for damage to the power lines, the substation or the house down the street. It is unfortunate, but it is the way the policy reads. So, these people should not get coverage.

That being said, someone needs to step up and help these people. I would suggest to Allstate and the other insurance companies that they would do more for their poor image by paying claims instead of fighting all of these people in court.

Categories: Claims, Current Affairs, Homeowners Insurance

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