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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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 will 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.

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