Home insurance in post-Katrina world

Dan Grech Sep 2, 2008
HTML EMBED:
COPY

Home insurance in post-Katrina world

Dan Grech Sep 2, 2008
HTML EMBED:
COPY

TEXT OF STORY

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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.