Rep. Gene Taylor, D-Miss. says yes. That’s why he’s pushing a proposal to broaden the National Flood Insurance Program to cover hurricanes. His argument is that the federal flood program ends up paying for a lot of hurricane-related damage anyway so it should collect premium for that, not private companies.
Taylor produced the video below using court testimony from a case against USAA insurance that was heard before the Mississippi Supreme Court earlier this month.
USAA and Nationwide Insurance attorneys said that a so-called anti-concurrent clause buried in most insurance policies legitimately exempts companies from paying for windstorm damage when any water damage is involved.
Here is an excerpt from the transcript, an exchange between Mississippi Supreme Court Associate Justice Randy Pierce and Nationwide Attorney Christopher Landau:
JUSTICE PIERCE: I’m giving you — the example is 95 percent of the home is destroyed,
the flood comes in and gets the other five percent, and you know that. Does your interpretation of the word “sequence” mean you pay zero?
MR. LANDAU: Yes, your Honor.
We’ll add thoughts from Nationwide and USAA when they get back to us.