September 09, 2005

Most insurance policies sold cover wind damage but not flood damage, and it was the latter that devastated Louisiana. Even so, of Hurricane Katrina's estimated $100 billion+ in economic losses, "insurers are already expected to pay $20 billion to $35 billion, more than [they have] paid for any other natural disaster in the country's history. But property owners are likely to push for a more expansive definition of insurers' liability." (NYTimes).