Insurance Companies Continue to Screw Katrina Victims

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Victims of Hurricane Katrina have been screwed so many times. First it was by the local government, then by the federal government, and finally by insurance companies that have been weaseling out of their obligations to policyholders from the start. Yesterday, insult was added to injury when the Fifth Circuit Court of Appeals ruled that insurance companies, including some of the big dogs like Allstate and Travelers, don’t have to pay for losses caused by flooding. The policies only cover wind and rain damage.

The shady dealings are sort of fuzzy. Apparently, many of the homeowners were assured that their policies provided full hurricane coverage. Also, some of the houses and businesses were destroyed by wind and rain hours before waters breached the levies and flooded New Orleans. Katrina victims may still have a chance for mercy. The case will head to the Louisiana Supreme Court next, and there are several similar civil suits waiting in the wings.

—Celia Perry

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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