Warning: Parameter 3 to mb_videobot() expected to be a reference, value given in /nfs/c03/h07/mnt/57630/domains/katrinaroadhome.org/html/14/libraries/joomla/event/dispatcher.php on line 136
Does Sheetrock Cost More When Taxpayers Buy it?




The Johnsons were unhappy about how much Allstate paid them in wind damages to their home at 286 Marina Drive in Slidell, Louisiana. They decided to take Allstate to court.  In reviewing their insurance documents for the case, lawyers found something that shocked them: Allstate had listed higher estimates for repairs if the damage was caused by flood damage than if it had been by wind damage. 

Sheetrock damaged by wind? Allstate was replacing the drywall at 77 cents per square foot.  Sheetrock damaged by water? $3.31 per square foot,or quadruple the cost. The same was true for carpeting, and for texturing and repainting the walls.



vidpanel_lt vidpanel_rt



Insurance Information Institute President Bob Hartwig warns, beware of trial lawyers.


Why would Allstate differentiate?  Lawyer Johnny Denenea says it is because the private insurance company pays for damage caused by wind, and the National Flood Insurance Program, subsidized by the taxpayers, covers damage caused by flood.  The private insurer minimizes its own payouts, and is generous with the federal government’s money.

Denenea found a computer programmer used by Allstate, which designed the software, that sets rates for repairs.  The software, called Integraclaim, cannot be manipulated by the field adjuster.

A representative from Allstate says that costs differ because of the circumstances under which damage occurred.  The cost to repair wet drywall,  for instance, may be greater than to repair a dry drywall.

The Department of Homeland Security, in a September 2008 report found several cases where wind and water determined separate price points, but wrote,  “These differences are not considered significant.”

Check out the following documents and you decide – are insurers bilking the government for money than they deserve? -


“1 - Unit Cost submission-Wind 286 Marina.pdf”

“2 - Unit Cost submission-Flood 286 Marina.pdf”



Are insurers bilking the government for money than they deserve?


share_story submit_comment






vidpanel_lt vidpanel_rt



Lawyer Johnny Denenea shows the proof of wind repairs versus water repairs.





Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!

Comments (2)Add Comment
March 25, 2009

So I understand Mr Hartwig right we are not supposed to trust trial lawyer opinions because they have a vested financial interest in suing insurance companies. A reasonable inference from his non-response, especially in light of the fact he is paid to perform public relations for insurers, that his word is not to be trusted either.

Yeah, that is what I thought.

Go get 'em Johnny!


Richard Trahant
March 26, 2009

I wonder what Hartwig makes per year from this corrupt industry? The "trial lawyer" boogey man is losing its impact, Bob. I don't think too many lawyers handling Katrina claims for property owners make a fraction of what hard-working CEO's like Ed Liddy and Ed Rust rake in per year.

Funny how the one case he is asked about, Weiss v. Allstate, he knows nothing about, despite the fact that it received worldwide media attention. Obviously, this means he really does not know anything about Allstate's and other insurer's claims practices. But we do!

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.





NFIP - The National Flood Insurance Program.  The federal program that guarantees homeowners are covered for flood losses.

FEMA - The Federal Emergency Management Agency.  Administers the NFIP.

WYO - Write Your Own insurance:  FEMA's name for outsourced flood insurance policies. FEMA contracts with existing insurance companies to sell, adjust, and settle flood claims.