The Katrina Fund: Repairing Breaches in Gulf Coast Insurance Levees

Abstract:     
This Article proposes the Katrina Homeowners Compensation Fund, a policy solution to the residential property crisis following Hurricane Katrina. In the wake of massive property damage, a heated legal battle has emerged on the issue of whether homeowners property insurance covers damage resulting from flooding due to the breaking of levees. This Article examines recently filed class action lawsuits and various congressional proposals, concluding that both current judicial and legislative remedies are inadequate in providing immediate, full relief to homeowners in devastated areas. The Article then proposes the Katrina Homeowners Compensation Fund, modeled after the September 11th Fund, which would constitute a federal bailout program to compensate uninsured and under-insured homeowners. It concludes that this Fund best serves the immediate needs of those affected by Katrina while preserving the integrity of the insurance market.

Number of Pages in PDF File: 46

Keywords: Katrina Fund, Gulf Coast Insurance, Levees, Hurricanes, New Orleans, breaches. homeowner's insurance, gulf coast, Hurricane Katrina, 911 Fund

Accepted Paper Series