Hurricane Damage in the United States: How to Plan for Catastrophes

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Table of Contents

Introduction
Conclusion
Works Cited

Introduction

When disaster strikes, it leaves many people not only devastated but also hopeless. If not handled correctly, the effects can cause many people to end their lives out of frustration. To many of us, watching your lifetime investments destroyed in a day can permanently turn our lives for the worst. Research shows that many people give up on life simply because they cannot take some of these losses positively. Since disasters are unpredictable, it is always important for one to plan ahead to enable us minimize the effects of these catastrophes. Getting an insurance policy is one good way of preparing oneself for these eventualities. The homeowners’ policies provide a good forum for people to insure their property. The policy covers many damages that may be brought about by one disaster. However, not every damage is covered in this policy. This is best illustrated by looking at the different hurricane damages that have occurred in the United States. (Anita)

A good example of this was the effects of Hurricane Katrina. Katrina has been classified among one of the worst disasters to ever befall our beloved country. The death toll from this disaster alone was placed at about 1300 people. The hurricane also displaced millions of people leaving them without a source of livelihood. As the world watched in horror at the shocking pictures of the tragedy, the one big question that was going on in the minds of those affected was on how to get their lives back on track. (Terrence)

Following the aftermath, insurance companies were in a dilemma since the numbers of claims were very high. As prepared as Americans always are, many local residents had taken the Homeowners Policies that insured their houses from damages caused by wind. This policy also covers damages covered by rain that is brought about by wind. However, it has a bizarre clause that states the insurance company will not pay for damages resulting from floods. Homeowners are required to take a different policy covering floods. As it turned out in the case of Katrina, only a small fraction of homeowners had insured against this risk and thus many of them did not receive compensation. It is however important to note here that most damage was caused by wind but the insurance companies insisted that the damages were because of floods. In fact, many homeowners claim that their houses did not have any signs of water in them. This clearly shows that the damages were because of wind. As it is, damages caused by wind are included in the homeowner’s policies that many people had been insured against. (Kathy)

The failure of insurance companies to pay claims left many people with no money and with the daunting task of rebuilding their homes. Immediately after this, Hurricane Rita struck. Since Hurricane Katrina had already weakened many houses, the effects of Rita were devastating. It is important to note that the magnitude of Rita was not as big as that of Katrina but due to failure by insurance companies to compensate this people, the effects of Rita were far greater. Hurricane Rita now felled their houses that had been weakened by Katrina. Again, the people were supposed to have been compensated under the Homeowners Policies but the insurance companies were lax in doing so. They claimed that the effects were because of floods that many people were not covered against. (Terrence)

The other major catastrophe to hit America was Hurricane Ike. Though this was of a lower scale than Katrina and Rita, the results were still devastating. The hurricane caused great damage to infrastructure in Houston, Galveston and its environs. People’s homes were completely destroyed. Like in the case of Katrina and Rita, insurance companies still refused to pay homeowners for the damages. Those who were paid got only a small fraction of the total amount they owed the insurance companies. (Anita)

The Homeowners policy is supposed to protect people from damages that happen due to calamities like hurricanes. It stipulates that once calamities happen, an insurance company is required to pay for the expense one incurs through staying in another place until they can go back to their own home. Many insurance companies however failed to honor this promise for homeowners putting them in bad situations. Many of the companies did not even have the courtesy of investigating if the damages were even caused by floods or wind. This left compensation to only the people who could pay for the flood insurance that is in reality expensive and not within reach of many people. (Kathy)

Conclusion

From Katrina, Rita to Ike, the story has always been the same-Insurance companies failing to pay claims brought to them. Just like one cannot be paid for a risk that has not been covered, insurance companies should come out and pay what they are owed by homeowners. The assumption that all damages in a hurricane are brought about by floods is not only unethical but also illegal. The government should come up with strong policies that seek to protect homeowners against these unscrupulous insurance firms. Just as homeowners are committed to paying the premiums, the firms should also commit themselves in case of a claim arising from a covered risk.

Works Cited

Anita, Lee. Wind or Water? The Debate Rages, But Who Will Pay? Property Owners Must Take What’s Offered, Or Fight Back. The Sun-Herald, 2005.

Kathy, Bushouse, Mississippi landmark suit to decide insurance liability of Katrina Storm surge. Knight Ridder/Tribune Business News, 2005.

Terrence, Atutz. Allstate ordered to cover expenses of Rita evacuees; insurer promises 2005. to oppose judge’s ruling hearing. Dallas Morning News, 2005.

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Hurricane Damage in the United States: How to Plan for Catastrophes

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