Tuesday, March 20, 2018

Victims of Katrina Realize Importance of Homeowners Insurance

According to Cleveland.com, the most affluent victims of Hurricane Katrina, which struck in 2005, are getting the most help — while poorer residents haven’t been as lucky.

It’s been suggested that out everybody who suffered damage to their homes in Mississippi and Louisiana, middle-class people and white homeowners are more likely than low-income and black citizens to have rebuilt their homes and lives.


In fact, a federal judge said in August that grants to homeowners in Louisiana discriminated against black property owners. The judge said the formula used to calculate grants is discriminatory to blacks as they tend to live in areas that have lower property values.

Over in Mississippi, officials wouldn’t give out grants to homeowners who suffered from wind damage stating the people should have had private homeowners insurance. That ruling was a big blow to black low-income homeowners as many of them had no coverage.

The rebuilding program in Louisiana provided some homeowners with grants of up to $150,000. However, citizens couldn’t collect more money than the value their homes were before the storms, no matter how much it cost for repairs. The state has now modified the relief program and will pay out another $2 billion to over 45,000 low-income property owners.

In total, the program provided $8.6 billion to over 127,000 homeowners. Families needed to possess homeowners insurance to be eligible for the initial grants.The state then started providing uninsured, low-income homeowners with grants up to $100,000.

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