State Farm Accused of Cheating Katrina Customers

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


Kerri Rigsby and Cori Rigsby, two independent insurance adjusters who worked exclusively for State Farm for eight years, say they have turned over to the FBI and Mississippi investigators thousands of documents proving that the insurance company systematically cheated victims of Hurricane Katrina. In an interview with ABC News, Rigsby and Rigsby describe what they call “widespread fraud” in State Farm offices in Biloxi and Gulfport, Mississippi.

The adjusters say that the insurance company brought in a shredding truck to destroy documents; however, State Farm maintains that shredding documents is standard procedure to protect customers’ privacy. However, Rigsby and Rigsby also said that outside engineers were pressured to prepare reports stating that structural damage was caused by water (not covered in State Farm policies), not wind. Furthermore, they reported that when wind was listed as the cause of damage, the reports were hidden and new reports were ordered.

Hundreds of homeowners in the areas damaged by Katrina have complained that they cannot get paid by their insurance companies, and State Farm is often mentioned as an especially difficult company to get money from. One of the most frequent reasons cited for refusing to pay is that house damage was caused by water, not wind. However, it is not unusual to hear homeowners say that they were told this even if their house did not flood.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate