Insurance Companies Continue to Screw Katrina Victims

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Victims of Hurricane Katrina have been screwed so many times. First it was by the local government, then by the federal government, and finally by insurance companies that have been weaseling out of their obligations to policyholders from the start. Yesterday, insult was added to injury when the Fifth Circuit Court of Appeals ruled that insurance companies, including some of the big dogs like Allstate and Travelers, don’t have to pay for losses caused by flooding. The policies only cover wind and rain damage.

The shady dealings are sort of fuzzy. Apparently, many of the homeowners were assured that their policies provided full hurricane coverage. Also, some of the houses and businesses were destroyed by wind and rain hours before waters breached the levies and flooded New Orleans. Katrina victims may still have a chance for mercy. The case will head to the Louisiana Supreme Court next, and there are several similar civil suits waiting in the wings.

—Celia Perry

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This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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