State Farm Bails on Miss. Homeowners

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State Farm announced today that it will stop writing new policies for homeowners in Mississippi. The action comes in the wake of $1.1 billion in payouts the company has made for Katrina-related lawsuits. The company’s post-Katrina claim that water damage was not covered prompted even Trent Lott, notorious critic of frivolous lawsuits, to sue.

It’s not global warming and the increasing risk of mega-hurricanes that has State Farm worried—insurance companies have been budgeting for environmental destruction for 30 years. Rather, State Farm’s Mike Fernandez told the Washington Post, it’s the “political and regulatory and legal environment” in the state. Lott always did call Mississippi “the center of jackpot justice.” Too bad the state’s residents will have to empty their wallets for pricier policies as a result of State Farm’s action.

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Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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