Produced by the Sun-Sentinel, a hurricane preparation video with helpful tips is available to watch on YouTube. Press play below to learn more about how to prepare for adverse weather in the coming hurricane months.
Blog
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Louisiana Courts Backing Residents Against Insurance Companies
In yesterday’s Times-Picayune, reporter Rebecca Mowbray details a string of rulings by the Louisiana courts in favors of residents against the insurers.
After siding with insurance companies in early rulings after Hurricane Katrina, the 5th U.S. Circuit Court of Appeal has suddenly cranked out a stream of policyholder-friendly rulings in hurricane cases.
In recent weeks, the region’s federal appellate court has affirmed an award in favor of a homeowner, overturned a decision in favor of an insurer, said that homeowners can collect mental anguish damages when insurers don’t pay, and revived a whistle-blower lawsuit alleging that insurers ripped off the government in paying flood claims.
The apparent change of heart has left many giddy plaintiff attorneys wondering whether the Texas judges involved in the favorable decisions have been moved by the experience of Hurricane Ike slamming their home state.
While it’s a bit pessimistic to believe that justice only comes with life experience, it is very good to see the courts supporting policy holders when the insurance companies hold out. There are a series of expectations the state has for insurance companies, including deadlines, good faith compensation offers, etc. Many of these expectations are inflexible and can lead to a successful lawsuit against the insurer.
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Storm preparedness tip: All-hazards alert radio
In the face of inclement weather, be it a tornado, hurricane, tropical storm, etc., it is important to be fully prepared and ready, as well as up-to-date with breaking news and forecasts. That is why an all-hazards alert radio is a great idea for families to keep in their basements in the event of bad weather.
Furthermore, the National Weather Service projects constant weather updates on a series of stations throughout the country.
NOAA Weather Radio All Hazards (NWR) is a nationwide network of radio stations broadcasting continuous weather information directly from the nearest National Weather Service office. NWR broadcasts official Weather Service warnings, watches, forecasts and other hazard information 24 hours a day, 7 days a week.
The radio itself can cost as low as $30-40 each (including delivery) and are described as essential in the event of adverse weather. This model is the size of a walkie-talkie. Not only portable and helpful, all Hazards Alert can be set to automatically activate and receive emergency statements.
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Insurance Statisics
Courtesy of the Insurance Information Institute
Hurricane Insurance Fact Sheet
Insurance companies have paid an estimated $40.6 billion on 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, the largest loss in the history of insurance. By contrast, Hurricane Andrew resulted in $15.5 billion in losses in 1992 ($20.9 billion in today’s dollars) and 790,000 claims.The four hurricanes in 2005—Katrina, Rita, Wilma and Dennis—generated more than $57 billion in insured losses and 3.3 million claims. Some 15,000 adjusters from across the United States were involved in helping policyholders recover from these storms.
More than 95 percent of the 1.1 million homeowners insurance claims from Hurricane Katrina in Louisiana and Mississippi, totaling more than $15.5 billion, were settled within one year of the storm.
In Mississippi, more than 334,800 homeowners claims, totaling $5.2 billion, have been settled. In Louisiana, more than 658,700 homeowners claims, totaling $10.3 billion, have been settled.
Nearly all of the 305,000 claims from damaged vehicles, totaling $2 billion, have been settled in both states.
Despite the attention focused on lawsuits filed following this catastrophic storm, the number of claims in litigation accounts for a very small percentage of the total number of claims filed. Estimates show that fewer than 2 percent of homeowners claims in Mississippi and Louisiana were disputed either through mediation or litigation.
Insurers remain committed to ensuring that all claims resulting from Hurricane Katrina are settled fairly and completely.
A poll conducted by IPSOS Public Affairs in 2006 found that 89 percent of homeowners in Louisiana and 93 percent in Mississippi are satisfied with their insurance company. The survey reported that four in five people (82 percent in Louisiana and 80 percent in Mississippi) who filed a hurricane-related claim are satisfied with the way it was managed by their insurer. While satisfaction numbers are slightly higher inland, most residents in the hardest-hit coastal areas describe themselves as satisfied with the way their claim was handled.
While significant problems with rebuilding persist along the Gulf Coast—including severe damage to public infrastructure, a shortage of contractors and reduced population—the billions of dollars in claims paid to date are helping fuel an increase in residential building. Building permits have risen by 4 percent in Louisiana and 32 percent in Mississippi, compared with a 4 percent decline nationally during the same period.
Insurance company claims payments equal 11 percent of state income in Louisiana and 10 percent in Mississippi.
These are really some eye opening statistics. It’s extremely important that residents of the Gulf Coast make sure they retain the proper insurance levels necessary to secure their home and property in the event of a storm or hurricane. If you feel you are under-insured, contact an insurance agent immediately to bolster your “portfolio” to protect yourself from the ravages Gulf Coast, especially Louisiana and Texas residents, storms can cause. When you are insured, it is important to make sure your documents are in order and duplicates are stored in a safe place outside of your home (ex: bank, safety deposit box, family storage/location outside of the hurricane “zone,” etc.) For more tips on how to protect yourself from hurricanes or for general ‘how-to’ ideas, check our section on storm and hurricane tips.
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Galveston residents facing off with mortgage lenders
As if waiting for insurance checks wasn’t enough, residents in Galveston are now being held up by their mortgage lenders. In an article by the Galveston County Daily News, the plight of some homeowners is detailed as mortgage companies try to protect themselves and their investment and residents remain financially trapped.
But almost five months after Hurricane Ike filled the house with nearly 5 feet of salty floodwater, the Lopezes were still waiting for the mortgage company to send them the first installment of funds to go toward repair.
So many storm victims have had similar problems with their lenders that the Texas Legislature’s subcommittee on hurricane recovery has recommended the state start making mortgage banks pay interest to homeowners on any insurance funds held for an unreasonable amount of time.
This just goes to show there are so many bureaucratic steps to insurance and home protection that remaining on top of issues and ahead of the curve may help you in the longterm should a tragedy befall you and/or your property.
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Property Insurance prices expected to Increase
Per WBRZ news, “Louisiana homeowners and businesses will see property insurance rates rise more this year than they have since 2006.” Business writer Ted Griggs cites the economic downfall facing the nation as the predominant reason for the increase, which could be anywhere from 3 to 10%.
[Insurance Commissioner Jim] Donelon said that with less coverage available, the law of supply and demand kicks in and prices rise.
Already, State Farm Fire & Casualty Co., the largest insurer in Louisiana, has asked to increase homeowners’ rates an average of 14 percent statewide. Farmers Insurance Exchange, the sixth-largest firm in the state, is seeking a 27.5 percent increase in homeowners’ rates and the institution of a 5 percent hurricane deductible. Louisiana Farm Bureau, the fifth-largest company, is seeking a 10.2 percent increase.
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Louisiana tops Illinois in Political Corruption
The Chicago Tribune, so graciously, pointed out the corruption in politics the great state of Louisiana is facing in the wake of Blagojevich by pointing out, while Illinois may have corrupt governors, they are nothing compared to us.
The beleaguered residents of Illinois may be squirming over their newfound visibility in the pantheon of corrupt states, thanks to the extravagant malefaction allegedly committed by the recently ousted governor, Rod Blagojevich.
But for genuine, savory, infused-in-the-gumbo style public venality, Louisiana still has Illinois, and most of America, beat. Ranked according to corruption convictions per capita from 1998-2007, Louisiana is No. 3, well ahead of Illinois at No. 19. (Only Washington, D.C., and North Dakota ranked higher—and in North Dakota’s case, the results were skewed because of its extremely small population.)
While it may be disheartening, the article faces a dateline of “New Orleans” and does, in fact, mention the following:
“We used to say that in Louisiana we like our food spicy and our politicians colorful,” said Rafael Goyeneche, president of the Metropolitan Crime Commission, a corruption watchdog group. “But lately we have noticed a shift in the public’s attitude toward corruption. It’s no longer a spectator sport. People don’t want to tolerate it anymore.”
It is nice to see a story featuring the headline “Most corrupt state: Louisiana ranked more corrupt than Illinois” does feature some reality: Louisiana residents are no longer willing to put up with bureaucratic nonsense and are ready to take a stand. While corporations and big business have relied upon apathy, it is good to see a quote in a national paper, albeit one with a slanted headline, point out we’re not putting up with the nonsense any longer. Just as insurance companies have put up with our complacency, we hope people will no longer put up with what they are offered but, instead, stand up for what is right.
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Report: Louisiana, Texas most expensive places for homeowners insurance
The Times Picayune reported yesterday
Louisiana has the third-highest homeowners insurance premiums in the nation, according to the first assessment of prices after Hurricane Katrina by the National Association of Insurance Commissioners.
The cost appears to be a Gulf Coast epidemic as Texas claims the number one spot, followed closely by Florida:
The most expensive property insurance market in the country in 2006 was Texas, where premiums increased 2.7 percent in 2006 to an average of $1,409 per home. But the NAIC cautions against comparing Texas to any other market because the Texas data comes from a different source than most other states, and the homeowners policies are slightly different.
The explanation (or excuse?) for this is simple: the weather and risk level of the Gulf Coast places the financial burden on citizens to properly maintain insurance on their homes and property. While this demands constant vigilance on the part of state government and the citizenry to make sure insurance companies do not overstep what is necessary for them to remain successful and in business, it, in the least, requires policy holders to make sure they get their “bang for their buck” and get the best service and response they deserve from their insurance company.
Always make sure your provider is conforming to deadline requirements should you make a claim and, in the event they act in bad faith, contact an attorney immediately.
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FEMA investigating La. hurricane recovery office
FEMA is now looking into cronyism in Louisiana in the wake of federal funding provided for the recovery effort post-Katrina.
WASHINGTON (AP) — The Federal Emergency Management Agency is investigating allegations of cronyism and other misconduct at the New Orleans office overseeing efforts to rebuild the hurricane-battered Gulf Coast, officials said Wednesday.
The agency, which has endured fierce criticism over delays in the rebuilding effort, sent a team of Washington investigators to its Louisiana office last week. The agency expects a report on findings in the coming days, two top officials said at a congressional hearing on the Hurricane Katrina recovery.
Of note is the following:
In Louisiana, about $3.4 billion in FEMA assistance remains unspent — nearly half of what was approved.
Hopefully the recent attention the mismanagement of tasks FEMA is receiving will lead to positive results for the Gulf Coast.
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CBS News details FEMA’s “Toxic Bureaucracy”
In a surprisingly candid and clear report on FEMA and its efforts post-Katrina, CBS News released a story on the 25th detailing what Slidell mayor Ben Morris calls “an indescribable nightmare that most people would not believe.”
An EXCERPT:
CBS News has learned that since January 1, nearly 80 employment-related complaints have been filed by staff at the office.
And in the last year, more than 30 complaints have been filed against one man – chief of staff Doug Whitmer – including charges of sexual harassment.
“The harassment, the equal rights – violations that are currently taking place over there, this office is slowing down the recovery in this region.” said one former FEMA employee.
And slowing down the recovery – these former employees charge – is exactly what some senior managers at the New Orleans FEMA office want.
Obviously this is a huge problem for the Gulf Coast but is a reality, and perhaps not so shocking, for those individuals who had their homes destroyed in Katrina and other hurricanes in the past few years. With FEMA appearing to be in disarray, it is ever important that residents remain vigilant on meeting deadlines or expectations put forth by the government and insurance companies in order to do everything they can to not be swept up in the apparent bureaucracy that is holding up the recovery effort.