The allegation in the insurance of Hurricane Katrina

The most disastrous natural phenomenon is believed to be the hurricane Katrina. This has been the costliest natural disaster that ever happened in history. The government has spent about $35 billion to $60 billion. This is remarkably high and is believed to affect the economy of the nation. The effects will mainly be focusing on the global and reinsurance markets.

Insurance claims have mounted which caused effects on the damages on the electrical conditions in the Gulf of Mexico. The devastating effect of Katrina has caused businesses to halt their transactions also so many damages on the properties of the place. There had been insurance issues whether the damages are fully insured or it is inclusive to the policies of the insurers. The insurance claims even the personal injury claims will cover the flood, the hurricane itself, and the trees that barred down on their properties. It has been said that New Orleans is not covered with flood damage.

Only half of the homeowners have acquired the insurance through the National Flood Insurance Programme. This means that if their properties are wrecked or destroyed by the hurricane, they will be covered with only the insurance they have paid. The rest of the claims will not be insured by the insurers.