State announces thousands of flood insurance claims generated by Hurricane Isaac
Hurricane Isaac has come and gone and the storm has left devastating floods in its wake. Louisiana was struck hard by these floods, with many of the state’s southern counties being inundated with water. According to Insurance Commissioner Jim Donelon, thousands of flood insurance claims have been generated by the storm, many of which coming from throughout the state. State officials note that a scant 31% of Louisiana residents have flood insurance coverage, leaving many with damaged property without financial support that could cover the cost of repairs.
Emergency rule established to provide some leniency to victims
Due to the severity of the disaster, Commissioner Donelon has instituted an emergency rule that will prevent late fees from being levied against flood insurance policyholders. The rule will also prevent insurance companies from imposing penalties on consumers, cancelling policies or preventing policyholders from renewing their plans. The emergency rule will also allow those with health insurance coverage to receive care from out-of-network medical professionals. This aspect of the rule is meant to provide consumers who have been stranded by the storm to receive the medical care they may need.
Flood insurance misunderstood by many
State officials believe that many Louisiana residents thought that their homeowner’s insurance policies would protect their properties and possessions from flood damage. Regulators note that most homeowners and renters insurance policies do not provide such coverage, leaving many consumers exposed to the risks associated with powerful storms and flooding. Early estimates from the state suggest that more than 13,000 homes were damaged by Hurricane Isaac, either due to flooding or the powerful winds associated with the storm.
Storm generates 3,000 automobile claims
Apart from the damage done to properties, more than 3,000 automobile claims were filed in the state as a result of the storm. A large portion of these vehicles were rendered inoperable during the storm. Those affected by the storm and the floods it caused may qualify for an assistance program set up by the state. More details concerning the extent of the damage will be available at a later date.