In 2007, Bloomberg Markets magazine published a searing investigation into how Allstate, State Farm, and other insurers, using the McKinsey method, were routinely lowballing offers to homeowners whose homes had been damaged or destroyed by natural disasters. The most famous irate claimant: the Mississippi Republican senator Trent Lott, who sued State Farm when the company wouldn’t pay for damage to his home from Hurricane Katrina. State Farm said the damage was from water (not covered), rather than wind (covered).
