Hurricane Katrina and Insurance: Lessons Learned

As the devastation from Hurricane Katrina begins to wane, the true assessment of damage to the area will begin. Currently experts are estimating that the damage from Hurricane Katrina alone will be over $26 billion, with about $1 billion due to damage to vehicles. Most insurance providers have already sent adjusters and other professionals to the area to begin processing claims, though many of the areas are still too hazardous for any non-authorized personnel to enter.

As the environment becomes safe for insurance personnel to enter, most insurance providers will begin processing claims. Hurricanes can do significant damage to cars from flooding, wind, and rain. With Katrina, there was also significant damage from looters and thieves. Another difficulty that assessors will face is the mobility of automobiles. This mobility makes autos hard to find and assess, and it also increases the likelihood of fraud.

Fraud is most likely to occur from companies taking automobiles damaged by flood and wind and not telling the consumer. Authorities in Louisiana and Mississippi are trying to catalog damaged vehicles to prevent this type of fraud from happening. However, consumers need to be on the lookout, and those filing claims need to understand the time consuming process.

What types of things can those not affected directly by Hurricane Katrina learn from this disaster? One of the first lesson is to review your auto insurance policy to determine if you have the right amount of coverage on your auto for a disaster. The victims of Hurricane Katrina are protected if they had comprehensive coverage from their auto insurance policy, as it protects you in case of flood or wind damage. If someone is affected and does not have his or her paperwork, the insurance companies have all set up hotlines for the victims of hurricane Katrina, where they have access to policy information.

Also, you should be prepared in how to file a claim. For instance, you should know what information your insurance provider will need to file the auto insurance claim and how the company will assess your damage. Many auto insurance providers require professional estimates and that a professional must fix your automobile. Also you should know about your insurance company’s policy on the types of parts they will pay for when repairing the damage.

Before you file the claim, if you have access to the vehicle, you should do your own assessment of the car and document the damage. You should not move the vehicle if it is damaged. Also, you will want to cover broken windows to prevent any further damage. However, some insurance companies will send a tow truck to remove the vehicle, and some policies cover rental cars. You will need to read over your policy to see what services are available.

Another good point is to make sure you keep a copy of your auto insurance policy in a safe place. If you are concerned about a disaster, you may want to include copies in your portable disaster kit. This way you will always have access to your insurance information. Also, go over disaster preparedness points to makes sure you are not only prepared for a disaster in regards to your insurance, but also in other matters.

If there is one major lesson from Hurricane Katrina, it is to be prepared. Understand your policy and how to file a claim with your auto insurance provider. Also, know how to protect yourself against fraud and learn to be patient through the claims process. While many of the victims are going through this painstaking process after being caught unprepared, the rest of the nation can take the lessons and be ready for whatever may come next.

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Hurricane Katrina and Insurance: Lessons Learned

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