As a result of Hurricane Katrina approximately 558,000 buildings, both residential and commercial were damaged, many severely. Many of these structures remain uninhabitable and unusable. Louisiana policyholders, including many small– and medium-sized businesses, suffered loss or damage to their homes and business premises, including personal and other property. In addition, many businesses were destroyed or shut down as a result of damage or lack of access to their premises or to sources of supply.
Louisiana families and businesses purchase “first-party” property insurance to protect their homes, offices, and other property, including furniture and office equipment. These policies may include additional types of insurance coverage, such as business-interruption insurance, which protects against destruction or disruption of the policyholder's business, depending on the terms of the policy. Katrina was different, because most of its devastation was caused not by floods but by storm surge-which is generated by wind.
KNOW YOUR LEGAL RIGHTS------- IF YOU FEEL THAT YOU HAVE BEEN UNFAIRLY TREATED BY YOUR INSURANCE COMPANY----CALL US.
Many of these legal actions will hinge on the “wind versus water” controversy, which boils down to a deceptively simple question: What part of the hurricane actually caused the damage? Was it the 150-mph winds, the wall of water formed by the storm surge, or flooding?
The question is crucial because most homeowners' insurance policies cover only wind damage, not flood damage. Most private insurers don't even offer flood insurance, which is sold almost exclusively through the Federal Emergency Management Agency (FEMA) at subsidized rates. FEMA's insurance program defines a flood as “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties
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