Slabbed. One of many first issues anyone may discover from Hurricane Katrina’s path alongside the Mississippi Coast was the variety of buildings that have been a complete loss. After pulling off the particles, these buildings have been famous as “slabbed.”
Whereas social media journalism was nonetheless in its infancy, one such regional reporting effort in regards to the plight of Hurricane Katrina policyholders was “Slabbed.” In Slabbed Retains Pounding on Coverage Protection Issues and the Litigation Discovery Coverage in Southern Mississippi, I wrote about Slabbed and its essential position to these impacted by Hurricane Katrina and struggling by way of the hardships of insurance coverage litigation:
Coastal Mississippi policyholders are nicely served by the each day and in-depth reporting by Slabbed. Writing each day for this weblog is time consuming; posting two to 5 in-depth discussions every day should border on a full-time job. These days, Slabbed’s posts have highlighted two essential points concerning insurance coverage protection and insurance coverage protection litigation in Mississippi. One, if insurance coverage firms wish to pay nothing below the all-risk coverage due to the anti-concurrent causation clause, a brand new type coverage is required–even when the federal government has to sponsor it. Two, the insurance coverage business is successful the lawsuits in Southern Mississippi as a result of they’re successful the invention battle over key info.
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I merely don’t have time to learn Slabbed on a regular basis. But, I’ve no hesitation in suggesting that many can study a fantastic deal from the posts. The concepts are exceedingly authentic. I’m sure that these within the insurance coverage business dislike Slabbed as a result of it does tend to demonize the business and people supporting their establishment. Think about if all of your finest associates, neighbors, and household needed to endure monetary destroy brought on by insurance coverage not paying following a devastating disaster like Hurricane Katrina. I think about your rhetoric in direction of insurers and their brokers wouldn’t be very complimentary both.
Touring within the fire-stricken areas of the Los Angeles wildfires additionally has “slabbed’ whole loss buildings, which appear to go on perpetually. It’s merely arduous to imagine. I assumed that if I ever used my California Bar license in a disaster scenario, it will be in response to an earthquake and never an city wildfire that destroyed over 15,000 buildings.
What’s the one difficulty 95% of all these poor of us suffered because of a complete loss, leaving them with solely a slab? They’re underinsured for the construction danger. The breadth and devastating penalties of the underinsurance plague don’t totally emerge till these mass whole loss conditions happen.
Actually days earlier than the Los Angeles blazes began, I warned about this looming disaster – now a actuality in California – in The Looming Homeownership Disaster: A Ticking Time Bomb of Underinsurance, Insurance coverage Premiums, Taxes, Systemic Losses, and House owners Not In a position to Pay for Prices of Possession. Now, now we have a gradual stream of wildfire purchasers coming to us with points concerning underinsurance.
Hurricane Katrina is clearly on my thoughts as its twentieth anniversary is upon us. We did some crucial work following that storm, which I’m very pleased with. Now, I’m spending plenty of my time working with our agency’s California-based attorneys on one of the vital novel occasions in our lifetime. Who actually would consider 15,000 buildings burning to the bottom in Los Angeles in 2025? Mass city fires have been over within the nineteenth century till not too long ago.
The issue is that we’re not studying sufficient classes to forestall lots of the similar points from repeating themselves. It’s nearly as if the insurance coverage business says, “Properly, that’s simply the way in which it’s” with out making an attempt to plan a technique to repair the insurance coverage product and make it work higher for everybody.
One yr in the past, in “Why Are Policyholders So Regularly Underinsured within the Occasion of a Complete Loss? What Can Repair the Underinsurance Downside?” I wrote about ideas consultants made on how you can right the underinsurance downside. I famous the essential position of insurance coverage commissioners in doing one thing for the reason that insurance coverage business appears to wish to do nothing about this important difficulty:
Each insurance coverage regulator and insurance coverage commissioner ought to completely learn this work and take motion. The underinsurance downside is profound and impacts not solely policyholders but additionally raises its ugly head when co-insurance is taken into account and raised through the claims course of. It arises in litigation when policyholders ask me what accountability insurers and insurance coverage brokers have when whole loss buildings usually are not near having sufficient insurance coverage protection for rebuilding. Underinsurance is just not good for anyone.
So much has modified in 20 years, and far continues to be needlessly the identical.
Thought For The Day
“Though the world is filled with struggling, it’s also filled with the overcoming of it.”
—Helen Keller