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The Katrina Fund: Repairing Breaches in Gulf Coast Insurance Levees

46 Pages Posted: 4 Feb 2010 Last revised: 10 Apr 2013

Mitchell F. Crusto

Loyola University New Orleans College of Law

Date Written: 2006

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.

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

Suggested Citation

Crusto, Mitchell F., The Katrina Fund: Repairing Breaches in Gulf Coast Insurance Levees (2006). 43 Harvard Journal on Legislation 329 (2006). Available at SSRN: https://ssrn.com/abstract=1546661

Mitchell F. Crusto (Contact Author)

Loyola University New Orleans College of Law ( email )

7214 St. Charles Ave.
Campus Box 901
New Orleans, LA 70118
United States
504-861-5743 (Phone)

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