President Joe Biden Insurance companies dealing with Louisiana owners have been told not to “hide behind the rules and technical details” when paying people claims for losses caused by Hurricane Ida.
“I call on private insurance companies: don’t hide behind the rules and technical details. Pay the money you owe your customers, pay for temporary housing in the national disaster and help those in need. This is what we should do now,” Biden Said in a speech delivered in Laplace, Louisiana on Friday afternoon.
Biden said in his speech earlier that unless the homeowner is subject to a mandatory evacuation order issued by the local or state government, some insurance companies may refuse to cover and limit assistance. Biden explained that many dioceses in Louisiana initially issued strong voluntary evacuation orders. He added: “Because the storm came too fast, many people did not have enough time to enforce the order.”
“No one has escaped from this deadly storm because they are looking for a holiday or a road trip,” he continued. “So, guys, they left home because they felt they had to escape the risk of death. It was not voluntary.”
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According to CNBC, insurance companies Allstate and USAA have agreed to pay additional living expenses for policyholders in Louisiana. It is expected that other insurance companies will take the same action in the next few days.
On August 29, Hurricane Ida struck Louisiana, destroying houses, businesses, hospitals, and schools throughout the state, and flooding the entire state. As of September 3, many local grocery stores were still closed, many places lacked clean running water, and people faced outdoor temperatures of 80 to 90 degrees Fahrenheit. According to Reuters, some government officials urged people who fled not to go home.
According to Karen Clark & Company, a company engaged in catastrophe risk modeling, insurance companies may need to pay up to $18 billion in compensation. The company’s estimates include private insurance for damage to vehicles, houses, commercial and industrial property, but do not include damage to ships, marine properties, or the national flood insurance plan.
In 2005, the wind speed of Hurricane Ada was stronger than that of Hurricane Katrina, but the wind of Hurricane Katrina was even greater.
According to a report by National Public Radio, one year after Hurricane Katrina hit, hundreds of people on the southern coast of the United States continued to sue insurance companies because the valid claims claimed by the survivors were improperly rejected. Lawyers accused insurance companies of using valuation and evaluation to enable them to pay as little as possible for the policyholder’s claims.
At the time, State Farm and other insurance companies stated that homeowners needed a flood insurance policy to cover the flood damage caused by the hurricane. Insurance companies said the same thing during Hurricane Ida.
According to a report from the Insurance Information Institute (III) in April 2006, one year after Hurricane Katrina hit the state, insurance companies settled 658,700 Louisiana homeowners’ claims, totaling $10.3 billion. According to III reports, overall, one year after the storm, insurance companies settled 94.8% of all homeowners’ claims.
Weekly newspaper The White House was contacted for comments, but no response was received before the publication time.
