Hurricane Katrina
On August 28, 2005, Hurricane Katrina hit the southern coast of the United States as the costliest hurricane on record. It is estimated to have caused $81.2 billion in hurricane related damages.
Hurricane Katrina first made landfall at a Category 1 hurricane on August 25, 2005, when it hit southern Florida. Hurricane Katrina then entered the Gulf of Mexico, where it intensified into a Category 5 hurricane on August 28th. The NOAA's National Hurricane Center reported that Katrina had sustained winds of about 160 mph as it approached the Gulf Coast.
Hurricane Katrina made landfall again on August 29, 2005, near the Louisiana and Mississippi border, as a Category 3 hurricane. It hit just east of New Orleans, and even though it was no longer a Category 5 hurricane, it had storm surges of up to 25 feet that flooded the coastal towns of the Gulf Coast.
Hurricane Katrina Aftermath
The damages from Hurricane Katrina cannot be summed up merely by a dollar amount. Homes are still being rebuilt, and damage is still apparent in every town, especially in New Orleans. Because the damage was so severe and widespread, there were many insurance claims and FEMA claims filed and not everyone was able to get the aid that they needed to rebuild. In the aftermath, some insurance companies have stopped insuring homeowners in the areas hit by Katrina, or they have raised homeowner’s insurance premiums to a very high level.
Homeowner’s insurance usually covers the cost to repair common hurricane damage, including damage to your home’s roofs and walls, garage, and your personal belongings. A homeowner’s insurance policy usually covers wind damage and wind-driven damage. However, most policies do not cover damage caused by wind driven water and storm surges.
Therefore, most insurance companies have ruled that they will not cover damage due to storm surges caused by Hurricane Katrina. Many insurance companies classify “storm surges” differently than “hurricane wind,” and do not provide coverage for storm surges. After the hurricane hit, many homeowners questioned the insurance companies and their policies on storm surges, and if they should have been covered under their homeowners' policies.
In the aftermath of Hurricane Katrina, many homeowners had to fight to ensure maximum hurricane recovery. Therefore, they turned to a public adjuster to help file their insurance and FEMA claims. Public adjusters negotiate with the insurance company on behalf of the policy holder, help them get through the complicated FEMA paperwork, as well as help to expedite the claim to get the aid money in a timely manner. The public adjusters assisted the policyholders to make sure that they received a fair settlement for their loss.
