Katrina and the Waves
This is a very depressing article from cnn. There is a large battle brewing between those who lost their homes from Katrina and their insurers. The main issue is of what caused the damages, flood or wind. The insurance companies, for obvious reasons, are claiming that the damages were caused by flooding, which are not covered by policies. The homeowner obviously hold a different point of view. What is interesting is that even those who hade flood insurance, it only covers $250,000. This is much less than the cost of building a shoreline house. It makes you wonder how many properties will have to go into default. Economic devastation.