How to avoid homeowner’s insurance cancellation

Lessons from Hurricane Katrina

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As the homeowner victims of Hurricane Katrina are discovering, most homeowner insurance companies are not swift to fully pay even valid claims. Although the insurance commissioners of Louisiana, Mississippi and Alabama have warned insurance companies about possible consequences for failure to promptly pay valid claims, already I've received two reader e-mails about major insurers who claim home damage was not insured by their policies. Purchase Bob Bruss reports online. Frankly, based on Florida homeowner insurance experiences with hurricanes and windstorms, it will take years to settle many of these claims. Insurers know most homeowners need damage payments promptly. But insurers are prepared to delay unless the insured is willing to accept a small amount as "payment in full." FLOOD DAMAGE IS NOT COVERED BY HOMEOWNER'S INSURANCE POLICIES. As Hurricane Katrina homeowners are fast discovering, their homeowner's insurance policy does not cover damage caused by flooding. To illustr...