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Sunday, September 11, 2005Insurers balk at paying out to 1 million Katrina flood victims
Millions of New Orleans residents may not be insured for the damage to their homes. More than half of the properties may be insured for hurricane damage, but not flood damage. The insurance companies are insisting it was the flood that forced the evacuation of the city and caused the damage to the homes. If the US courts agree, the insurance industry could save as much as $10 billion dollars, leaving more than a million people destitute.
What recourse will these people have? They will not be able to seek assistance from the Federal Government because the Republicans are going ahead with their plan to cut programs that can aid the poor.