Tarry for the Nonce

August 25, 2006

Up That Premium

Filed under: News — lmwalker @ 6:24 pm

It is absurd that insurance should have to pay for coverage that was never requested.

Paul Leonard did not buy flood insurance, but through his attorney, Dickie Scruggs, filed a lawsuit arguing that Nationwide Insurance should cover his losses from Hurricane Katrina regardless of what his insurance contract said . . .

Someone listening to CBS News over the course of the last monthís coverage of Leonardís lawsuit would never know there was a clause in his insurance contract that excluded wind-driven water, or that Leonard had read his insurance contract and decided not to spend less than $400 a year for $250,000 in flood insurance provided by the federal government . . .

[W]hat is fair about asking insurance companies to cover risk they did not agree to cover?

Indeed. And since that money has to come from somewhere, what is fair about asking the rest of us to cover it? Pity Mr. Leonard though I might, if also understand that if I choose to opt out of extra insurance coverage, I can’t consider myself entitled to the coverage for which I didn’t pay.

Ethical people understand this.

(Hat tip to Lori Donlon.)

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