Storm Insurance Coverage

Source: Rod

In the wake of natural destruction wrought on the Gulf Coast by one of the worst hurricane-seasons in recorded history, the unprecedented scale of the reconstruction operation depends on a number of factors.

Regarding reconstruction, some people have decided not to rebuild. The scale of the destruction the people of the Gulf Coast have witnessed this hurricane season has led many of them to leave the area with indications they will not return.

There are other people who thought they had insurance coverage on their homes specifically designed for hurricane damage and now find that insurance companies are trying to exclude them from compensation based essentially on the definition of "hurricane damage".

There must be difficulties - amid the obliterated coast that many compare to a war-zone - in deciphering precisely what forces cause specific damage regarding destruction that is so vast.

The insurance companies claim the policies were geared to compensate for wind-damage from the hurricane, but not for storm-surges of water that reportedly caused much of the damage - even though hurricane-speed winds caused the storm-surges that led to the flood of homes.

The insurance companies claim that storm-surges are not part of the wind-damage caused by hurricanes - at least in defending the hurricane compensation policies as they define them.

A storm-surge is a giant wave that combines the wind-speed of a hurricane with the normal tides of the sea, and heaves it upon the coast with such momentum, force, and mass that it floods the area. The tactic of insurance companies is to define hurricane damage - as incomprehensible and overwhelming as it is - by the condition of winds alone, even though they exclude storm-surges.

Whereas the insurance companies claim the policies cover the wind-damage of a hurricane, the policyholders believed that insurance would logically cover storm-surges from those winds, as well as the inseparable force of wind and immeasurable displacement of water from any hurricane.