A year later, insurers report 95% of Katrina claims settled in La. and Miss.

One year after Hurricane Katrina, the insurance industry says that nearly 95 percent of homeowners insurance claims have been settled in Louisiana and Mississippi, insurance companies have paid billions in storm damage claims and the vast majority of homeowners in both states say they are satisfied with their insurers.

The Insurance Information Institute (I.I.I.), an insurer-supported research and information orgranization, estimates that more than 993,000 homeowners insurance claims filed with non-goverment entities have been settled in the two states, totaling nearly $15.5 billion. Home-owners insurers ultimately will pay more than one million homeowners claims totaling $16.4 billion from Hurricane Katrina.

The I.I.I. estimate does not include claims filed with two government entities: Louisiana Citizens Property Insurance Corporation, the state-owned property insurance company of last resort, or claims for flood damage filed with FEMA’s National Flood Insurance Program.

The report also does not cover claims in Florida or other states.

In Louisiana, insurers have settled 658,700 homeowners claims or 94.8 percent of expected homeowners claims from Hurricane Katrina, totaling $10.3 billion, reported the I.I.I. In Mississippi, 334,800 or 94.3 percent of expected homeowners claims, totaling $5.2 billion, have been settled.

Some 99 percent of 305,000 claims from damaged vehicles totaling $2 billion have been settled in both states.

A settlement means that the policyholder and the insurance company have agreed on the extent of the covered damage and the likely cost of repair.

A separate analysis performed by the Property and Casualty Insurers Association of America shows that in spite of a range of obstacles to the rebuilding process, the influx of insurance claims payments is contributing significantly to the recovery in the region. While significant problems persist – including severe damage to public infrastructure and reduced population continue to present challenges – the billions of dollars in claims paid to date are helping fuel an increase in residential building. Permits have risen by 4 percent in Louisiana and 32 percent in Mississippi, compared to a 4 percent decline nationally in the same period. A new influx of federal aid totaling $107 billion should contribute to further progress.

Source: I.I.I.