NEW YORK — The Senate Banking, Housing and Urban Affairs Committee will hold a hearing Wedn... Ahead of the Bell: Katrina
NEW YORK — The Senate Banking, Housing and Urban Affairs Committee will hold a hearing Wednesday to discuss the impact of Hurricane Katrina on insurance for families and businesses along the Gulf Coast.
In a number of lawsuits, Gulf Coast homeowners are suing property insurers for refusing to cover damage caused by flooding in the aftermath of Hurricane Katrina, which pummeled New Orleans and the surrounding region. Some insurers refuse to pay because of clauses in homeowners policies excluding flooding and hurricane damage from covered perils.
Homeowners' insurance usually covers wind damage from hurricanes and damage to the home from fires, auto accidents, among other misfortunes. Along the Gulf Coast, flood insurance is sold separately from homeowner insurance and made available through a federal program.
Nearly 95 percent of homeowners claims have been settled in Louisiana and Mississippi, and insurers have paid out nearly $15.5 billion in claims to hurricane victims in both states, according to New York-based Insurance Information Institute.
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