Insurance may cover most flood-related car losses

Kevin Rademacher

Thursday, Aug. 21, 2003 | 11:11 a.m.

Regardless of how the cars found their way into Tuesday's Northwest Las Vegas flood waters, the damages should be covered.

The state Insurance Division said about 30 flood-related automobile claims had been filed by Wednesday afternoon, said Peggy Dehl, a division spokeswoman.

Insurance company representatives said it will make little difference whether the flood waters found the car or a driver plowed into the water. If the car is covered for a comprehensive loss, the claim will probably be paid.

"So far we have seen 12 auto claims, and we expect that all of those will be paid," said Allstate Insurance Co. spokesman Joe Gacioch.

Gus Miranda, a spokesman for State Farm Insurance, agreed, adding that the only circumstances where claims would be denied is in the case of intentional damage.

Those cases, he said, are rare and hard to verify.

"We would usually have to get information from a tipster," he said. "If we could prove it, yes, it would be denied. But it would be very difficult to prove that someone did something like that on purpose."

Gacioch said the 12 claims Allstate is handling involve vehicles that are registered to addresses in the flooded areas, taking much of the guesswork out of processing the cases.

Gacioch, who works out of a Phoenix office, said processing claims related to poor decision making can be frustrating. Arizona has managed to limit such claims with the recent passage of a so-called "stupid motorist" law.

The statute allows agencies, such as police and fire departments, to bill stranded motorists for their rescue if it is determined that they failed to obey warning signs and become stuck.

"That's limited a lot of those types of claims just with the threat of enforcement," Gacioch said.06