Thousands of people were displaced because of Hurricane Katrina in 2005. There are also thousands of people who still own homes in New Orleans and the surrounding areas who are trying to rebuild their homes and repair their property and they are getting little or no help from insurance companies. The reasons behind unpaid Hurricane Katrina insurance claims are multi-faceted and cannot be blamed on one thing but one thing is true – and that is that the system is broken and a lot of people are being left out in the cold.
New Orleans has long been viewed as a massive flood hazard and as they depleted the wetlands leading out to the gulf coast, their buffer against hurricanes and other giant storms was inevitably damaged as well. With little or no infrastructure planning for a disaster of this scale, the city is literally broke, as are many of its citizens. When Hurricane Katrina plowed into New Orleans, it devastated many that did not have sufficient hurricane insurance coverage and once the dust settled it seems as though everyone is pointing at everyone else.
First there is the issue of what homeowners insurance will cover and what it will not cover. Most homeowner’s insurance policies explicitly do not cover flood damage. The National Flood Insurance Program is supposed to be responsible for claims of that nature, while homeowner’s insurance covers issues like wind damage and driving rain damage. Problems arise when homeowner’s have both kinds of damage – so which company takes responsibility and pays for what damage on which Katrina insurance claim? In many cases these Katrina hurricane insurance claims are denied outright by the homeowner’s insurance company and then the homeowner is left with no way out.
Then there is the issue of FEMA. As we have seen in Florida, FEMA will actually come back to citizens and ask them to pay back federal relief funds depending on whether they received any settlement from their insurance company. This can mean that you receive money from FEMA and then if you receive anything from your homeowner’s insurance, even if it does not cover the total damage to your home that you end up owing money to the government.
The best way to set about this process is to find an experienced attorney who is used to dealing with insurance companies. Although it may seem like a wasted expense or a waste of time, and insurance company automatically listens better and works harder and treats more fairly someone who has a legal advocate. Realistically, no matter what happens with your insurance settlement, you are still going to have hard financial ramifications from a natural disaster like hurricane Katrina but if you can get some compensation based on insurance you have paid for, then you should work to get that money.
If your hurricane Katrina insurance claim has been denied or has gone unanswered, contact a qualified attorney as soon as possible and get the financial help you sorely deserve. There are laws that govern the way an insurance company handles a claim and if your rights have been violated, a reputable insurance attorney will know and will help you address the problem.