Run For Coverage
The Independent Weekly (Lafayette, LA)
February 1, 2006

Only during this period of Louisiana’s long history would Al Trautman be able to tell his story with little or no shock value, as it’s an all-too-familiar tale after last fall’s storms. Trautman can now stand in his bedroom and enjoy a panoramic view of his backyard — credit Hurricane Rita for the remodeling job.
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Then there are insurance issues. His provider has yet to even take a look at his property, and there’s still no word on his original claim. Trautman thought he had flood insurance through a private insurer, but that can’t possibly be the case, as the federal government is the only entity that provides primary flood coverage — through the National Flood Insurance Program. His insurer asked for another $2,400 last year, and Trautman suspects it had something to do with elevations, but he’s not sure.
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J. Robert Hunter, former head of the National Flood Insurance Program and director of insurance for the Consumer Federation of America, a nonprofit advocacy group, says it’s all about profits — and the train is already out of the station.

“Families will have to dig deeper into their pockets because insurers have been steadily increasing hurricane coverage deductibles and making other policy limitations,” he says, via a written statement. “This liability shift back to consumers may take many by surprise.”

Another consumer group, Americans for Insurance Reform, recently released a comprehensive report documenting the insurance industry’s response to the hurricanes. Joanne Doroshow, AIR’s executive director, says many victims were naively looking to their providers for assistance they couldn’t find elsewhere. “What many found was no help at all, resistance by insurance companies to pay them anything, leaving victims frustrated and angry, not to mention destitute,” she says.

For a copy of the complete article, contact AIR.