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10 Years Forward: Navigating homeowners insurance after Katrina

10 Years Forward: Navigating homeowners insurance after Katrina

10 Years Forward: Navigating homeowners insurance after Katrina
News from WDSU New Orleans:

Hurricane Katrina was the worst insured loss event in the history of insurance. As Katrina struck homes, people in southeast Louisiana were hit hard by rising insurance costs long after the floodwaters receded.

As she thumbed through the pages of one of the most difficult and challenging time in her life, Denise Thorton recalled losing everything when seven feet of water flooded her Lakewood South home.

In 2015, she is back on her feet, but her homeowners insurance premiums are staggering.

Pre-Katrina, Thorton paid $ 2,164. In 2015, her insurance is nearly 5 times as much at $ 9,811.

“That’s a lot of money — $ 10,000 a year,” she said. “It’s ridiculous … you have to give a certain amount of inflation over 10 years, but not five times as much. I think they’re capitalizing on (it) or they’re minimizing their risk to zero.”

Virgil Jonson, of 3rd Millennium Insurance and Financial Services, deals with insurance companies all the time. A homeowner himself in New Orleans East, he said his premiums jumped from $ 700 to $ 3,000 in 10 years.

After Katrina, most national carriers reduced their coastal exposure before leaving the state entirely.

“They want to make money so they’ve got it priced so that if there’s another Katrina they can still make money,” Jonson said. “It’s a specious and spotty relationship. Some of them…………… continues on WDSU New Orleans

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