Home insurance in post-Katrina world
Katrina cost the insurance industry $40 billion, and in the hurricane's wake, home insurance rates have as much as doubled. Many homeowners couldn't afford the new premiums and had to pass. Dan Gretch reports.
A roof blown off by winds from Hurricane Gustav fell on top of a car (Stephen Morton/Getty Images)
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Renita Jablonski: Insurance companies are also breathing a sigh of relief today. After Hurricane Katrina, insurers reported losses topping $40 billion. Early estimates after Gustav put losses between $6 billion and $10 billion. And as Marketplace's Dan Grech reports, private insurers are far less exposed than three years ago.
Dan Grech: After Hurricane Katrina, many private insurance companies jacked up premiums along the Gulf Coast. Robert Hartwig is with the Insurance Information Institute.
Robert Hartwig: The cost of homeowners insurance in coastal areas that are exposed to hurricanes today is higher than what it was pre-Katrina because the risk is recognized to be greater.
Allison Plyer is with the Greater New Orleans Community Data Center. She says many homeowners have faced a doubling in their premiums.
Allison Plyer: Homeowners insurance became incredibly expensive after Katrina and a number of people did choose not to get it.
That means once the winds die down, it could leave some unlucky homeowners holding the bag. Gustav will also test state-run insurance programs. After Katrina, many private insurance companies stopped writing policies along the Gulf Coast.
I'm Dan Grech for Marketplace.
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