Declarations

Taking responsibility for levee failure

‘This is the first time that the Corps has had to stand up and say, `We’ve had a catastrophic failure.’ … Words alone will not restore trust in the Corps.”

Lt. Gen. Carl Strock, Chief of the U.S. Army Corps of Engineers. The agency issued a 6,000-page-plus report on the disaster on June 1, the first day of the 2006 hurricane season, which said the levee system failed because it was built in a disjointed, incomplete fashion using outdated data. The report noted that the system contained inconsistent levels of protection and lacked necessary redundancy.

Source: The Associated Press and the Army Corps of Engineers, www.usace.army.mil.

More time needed to file lawsuits

“Given the unprecedented number of claims following Hurricanes Katrina and Rita, one year is simply not going to be enough time for many policyholders and insurance companies to work out a settlement that is in the best interest of both.”

Louisiana Commissioner of Insurance Jim Donelon, announcing Advisory Letter 06-04, which was sent to approximately 100 companies with homeowners insurance policies in Louisiana. Donelon requested that they extend from one to two years the period of time in which policyholders can file suit on a homeowners claim.

Source: Louisiana Department of Insurance.

Not second-class

“We are able to have an equitable housing program that have limits of up to $150,000, just like Mississippi’s. That means we aren’t second-class citizens.”

Louisiana Governor Kathleen Babineaux Blanco, announcing a federal housing aid program that would provide Louisiana homeowners with grants of up to $150,000 per homeowner depending on the type and extent of damage from Hurricanes Katrina and Rita. The program is similar to one in Mississippi that already has full federal funding.

Source: Associated Press.

Windstorm or terror?

“Fitch’s chief concern is that windstorm insurance along coastal areas may become commercially unavailable, possibly echoing in severity the terrorism insurance issues of late 2001/early 2002.”

Fitch Ratings Senior Director Patty Bach. Fitch reported a 25 percent and 400 percent in windstorm and flood insurance premiums since hurricane season began on June 1. Bach noted that some insurers are drastically capping windstorm coverage or dropping the coverage completely in coastal areas.

Source: Fitch.

Topics Catastrophe Louisiana Hurricane Homeowners