Insurance Dispute Lawyer Blog

While stories have been popping up progressively in the wake of Hurricanes Katrina, Gustav and Ike, one interesting development has been the efforts by lawmakers and citizens for preparedness should an unpredictable catastrophe befall their hometown. States along the Eastern Seaboard have been taking action instituting insurance measures and local disaster drills should an unexpected and devastating hurricane knock on their doorstep.

New Jersey is one of those states, taking it as far as to create a fund that would help make sure homeowners would be protected in the event of a cataclysmic storm:

Today, the Legislature will begin hearings on how to best protect New Jersey homeowners from the devastation of major hurricanes or other natural disasters. This is an important and timely step; the Atlantic hurricane season begins in less than a month and New Jersey is both exposed and vulnerable to those storms.

The Senate Commerce Committee will hear testimony on the "New Jersey Consumer Catastrophe Preparedness and Protection Act" (S2089), sponsored by Senate Majority Leader Steve Sweeney (D-Gloucester). It would use private insurer dollars to create a fund that would stand behind the traditional insurance market to cover the most extreme losses from truly massive hurricanes -- not the routine storms that sweep across beachfront properties, but those whose devastation would stretch far beyond our coastal communities and well into many of our urban centers.
Because the fund would be a pubic-private partnership, private insurer dollars that are deposited into the fund, as well as the fund's investment income, would be exempt from state and federal taxes. Mandatory annual deposits combined with tax-free investment income would help the fund to grow year after year.

A portion of the investment income, but not the principal deposits, would by law be annually appropriated for preparation and planning so that damages from storms could be minimized. A portion would be used to enhance first-responder training and equipment so that lives could be better protected when the unthinkable does happen. A portion would also be dedicated to improve consumer and homeowner education so that residents can be informed and prepared in the event of a massive natural event.

It's good to see that the lessons of the past will not be forgotten so easily, even in states that did not face such hardships directly.

In a move set to memorialize and preserve the memory of the carnage and harm recent hurricanes have caused, the NOAA is retiring several notable storm names from active use in the upcoming hurricane season.

The names Gustav, Ike and Paloma will never be associated with future hurricanes or tropical storms on account of their deadly romp through the Caribbean last year, the United States National Oceanic and Atmospheric Administration (NOAA) has announced.

The storms claimed more than 200 lives and left a trail of destruction calculated in the billions across the region from August to November 2008.

Under the normal six-year rotation, the names would have been up to be used again in 2014. However, they will be replaced by Gonzalo, Isaias and Paulette.
An NOAA spokesman said the names were retired for reasons of sensitivity.

This is a good move by the weather service and a chance to move forward in the wake of these storms' deadly destruction.

While exact estimates are not exact to report, it is important to remember the damage of Gustav seven months later. This article, dated September 3, 2008, summarizes the hardship Gulf Coast residents faced

Storm-ravaged homeowners in the path of Hurricane Gustav will file an estimated 175,000 wind- and flood-damage claims with insurance payouts likely to top $5 billion, the Consumer Federation of America reported Wednesday.

Actual damages to covered property could range from $2 billion to $10 billion, according to industry estimates for the storm, which continues to dump rain and high winds across Oklahoma and parts of the Southeast.

The Consumer Federation of America is warning that because of increased deductibles and recent policy limitations on hurricane coverage, many homeowners will assume a greater share of the cleanup costs.

The final line is the most chilling. Homeowners often have to take the burden of hurricane damage as a result of being underinsured or insurance companies refusing to pay out, or at least give real and fair estimates, to homeowners. As a result, the burden of storms falls upon residents who, a week before they were aware of the storm, believed they had protected themselves to the best of their ability and had done the necessary things and steps to maintain their family's well being. However, the reality Gulf Coast residents fell into post-Katrina is that insurance companies will do what it takes to avoid real or fair payouts in the face of protecting their budgets and bottom-line. When this happens, it is inherently necessary to contact legal counsel, gather all of your documents relevant and contact legal counsel.

During an interview with WBRZ, Louisiana's insurance chief reminded Gulf Coast residents about tax rebates available to citizens in the wake of Gustav and Ike.

Homeowners who suffered property damage from Hurricanes Gustav and Ike are eligible for two tax rebates and a tax deduction. Louisiana Insurance Commissioner Jim Donelon said property owners will receive a rebate if they were charged for a Louisiana Citizens assessment on their 2008 policies. Additionally, residents can claim damages in excess of $100 as a 2008 federal hurricane tax deduction.

The video of the interview can be found here.