State Farm Insurance allegedly destroying papers

April 11, 2006 Zach Scruggs, a lawyer for United States Senator Trent Lott, says that State Farm Insurance Company is destroying records related to claims for damage from Hurricane Katrina.

The records allegedly contain information saying that State Farm fraudulently denied insurance claims made by its policy holders, including Lott, that had homes there were damaged or destroyed when Hurricane Katrina came ashore on the Gulf Coast.

Scruggs said that Lott has "good faith belief" that many employees of the insurance company in Biloxi, Mississippi are destroying engineer's reports that were inconclusive as to whether or not water or wind was the main cause of damage to the buildings affected by the hurricane.

Lott is among thousands of home and/or business owners who had their property damaged or destroyed during the hurricane and had their claims denied because State Farm claimed that their policies don't cover damage caused by floods or water that was driven by the wind.

State Farm has not issued a statement on the matter so far.