Senator Trent Lott is among the hundreds of thousands of homeowners along the Gulf Coast who lost everything, and now he is getting the same rip-off from State Farm, his homeowners insurance provider. They have told him, as all the entire insurance industry is telling all of their clients, that they can only give him about $5,000 toward the total loss of his $750,000 home because they think much of the damage was done by water instead of wind and that this comes under the category of "flood insurance" instead of hurricane. He has announced that there is going to be "hell to pay," and he has enlisted a relative who is the same attorney that made the tobacco industry confess their criminal behavior and pay up massive amounts.
There is no jury in America that will agree that homeowners insurance does not cover hurricane damage. The tactic that the insurance industry is taking represents moral failure on a larger scale than any industry crime to date in American history. It is irresponsible to their own stockholders because eventually they will have to pay, they are only buying time by forcing hundreds of thousands of suddenly homeless American families into a cruel bind where they will not have enough money to rebuild, but will have to continue to pay their mortgages on empty lots and piles of rubble. Eventually they will have to assume double mortgages in order to have homes. It will mean that hundreds of thousands of the next generation will not go to college and hundreds of thousands of families will spend the rest of their lives never really escaping the slavery of debt.
If the insurance industry cannot provide the resources to do what homeowners insurance is supposed to do--replace the destroyed homes along the Gulf Coast--it really has not right to continue to exist. It is a useless leach on American society of no value. If it cannot meet its moral duty in the aftermath of Katrina, it should be closed down and replaced by something new that works. Why else would millions of Americans pay for homeowners insurance?
This is such a massive moral failure that Christians should really begin to petition their denominations, colleges and universities, retirement funds, etc., to divest holdings in insurance companies that are in the homeowners business. As a matter of conscience, we cannot continue to own stock in such immoral institutions.