Per the Insurance Journal:
Gulfport, Mississippi Mayor Brent Warr, who is under indictment on several counts of fraud, will not run for re-election.
Warr made the announcement this week in a videotaped message released by his office.
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.
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.
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.
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.
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.
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.
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.)
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.
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.
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