Hurricane Katrina and the insurance industry, Part 1
More than two years after Hurricane Katrina, its effects are still very much visible. The impact of the disaster on the insurance industry has likewise been unprecedented. In an online interview with Carolyn Gorman of the Insurance Information Institute, she mentioned that this was the “worst natural disaster” the industry has had to face. Ms. Gorman enumerated three common mistakes made by homeowners: not getting flood insurance, not insuring a house to its full value and not having a home inventory. With 60 percent of U.S. homes underinsured because of renovations which the insurance companies were not alerted of, many homeowners do not have enough insurance for rebuilding.
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