Louisiana Insurance

NEW ORLEANS - Robert Lynn Sr. Green ’s shield is outside his supporters in the city FEMA 9 Ward, a neighborhood flooded after Hurricane Katrina, proclaims: “If you build they come.”

It is a vision of hope, faith, a takeover. But this view is increasingly difficult for people here. In this once so vibrant, which is still largely locked 19 months after Katrina, empty treaties range of blocks.

The reconstruction of Green’s neighborhood and others in Louisiana and Mississippi hinges on many factors, including the need for construction aid. But nothing has perhaps more than the reconstruction of rising costs and availability of insurance offence.

Owner and proprietor said that their premiums have doubled or tripled since Katrina. Companies are delaying reconstruction. Workers have slowly. Sky High become insurance, which Mississippi Attorney General Jim Hood calls the “third storm to take the region - even after Katrina and the legal consequences to settle disputes concerning the insured loss.

What assurance is transformed to a crushing load of the population, the risk of ripple effect of jobs and by extending the region’s recovery. The employer is it difficult to recruit workers can not, at home or insurance can not get enough. High prices are compensation insurance tax breaks and government grants and federal governments have dangled to try and tooth development. And some say woes insurance companies are the driving force behind the State budget.

Katrina killed Green’s 73 years, mother, Joyce, and 3 years, granddaughter, Shanai, and took away his house. Now, with insurers progress memories or even rejection of the demand policy golf along the coast, Green’s difficulties when buying insurance is the owner of the house, another setback in its struggle for the reconstruction of his home and recover his life.

Insurers want to do business, so he does not want to do business, when it is not, “said Green, 52, plans to purchase a state policy-insurers, citizens of Louisiana, which ultimately cover pit - - In the case rate of at least 10% more than the private market - owners, insurance can not buy elsewhere.

“It targets a goal, they say here that the risk is so great, it can not reassure us,” said Green. “It makes it more difficult,” he says, “for people to come.”

In some neighborhoods of Louisiana and Mississippi, the effects of Katrina obsolete in the “for sale” signs that many proclaims: “I want yet.”

Hurricane Katrina has caused major damage or serious about 267000 homes in Louisiana and Mississippi. It is also down thousands of businesses.

One of the companies that have not been able to return to open Mermenteau Convenience, seafood and economy houses, Grand Chenier, who sells shrimp, crabs and catfish.

The owners and Penelope Keith Courvelle say they can not rebuild their seafood business because they can not be assured that it would now: $ 13000 per year about seven times, which pay before ” Katrina “. “If I could even, I would be already established, these business,” said Keith, 50

Disputes underway

Surges insurance rates, as hundreds of owners and contractors to remain blocked in the event of a dispute over payments made by insurers for Katrina damage. “Only one of the biggest stories in the lives of people here: Insurance Administration,” said Andy Kopplin of the Louisiana Recovery Authority, a national agency, which after Katrina to rebuild Louisiana.

A few kilometres from the Courvelles, Yancy and territorial Welch have been living in a trailer since the hurricane, because they have received has not been a policy of compensation for owners of houses destroyed Yancy’s home. All that is left of the house is the foundation.

“We are almost at the point where, now owner (insurance) did not pay, we do not want to be” (insurance), if we rebuild, “said Terri.

What is the hope of any payment to build a house.

But most owners are required to ensure their homeland because they regulated federal mortgage. Some owners are reluctant to rebuild without some assurance that insurance rates will decline. Percentage of homeowners have more than doubled along the coast, because “Katrina”; business has increased even more.

“People are ready, with a lot coming at home,” said Rep. Bobby Jindal, R-La. “But the cost of living, with the roof.”

Morris Strickland, the owner of the company, Ocean Springs, Miss, said he can not afford the reconstruction of his furniture shop or oil change, which were decimated by Katrina, because the skyrocketing insurance. It is also a change of plans to develop a shopping Plaza and the residence.

“The increase has agreed on everything,” said Strickland. “I can not afford an increase of 400% between them. I do not know, like any businessman.”

Insurers say they have prices to increase sharply along the Gulf Coast and in other coastal areas because these areas seem increasingly vulnerable to hurricanes. In addition to paring back or drop coverage for individuals and customers along the Gulf Coast, insurers are often the insured to pay 2% or more of all experts insurance before the launch in

“With forecasts of more intense and frequent hurricanes, the degree of risk is increased,” said Robert Hartwig, chief economist for information exchange group insurance institute. “Assurance, in order to reduce the risk of underwriting in these areas. ”

From the consumer policy is favourable, but regretted that insurers, higher prices unfairly. After Katrina, “the insurer began with a new formula for risk increases, with projections for short-term losses in coastal regions such as the Gulf Coast. This means higher prices for homeowners.