The damage that Hurricane Harvey has caused in Texas has been devastating. People have lost cars, homes, and many other properties that were part of their everyday lives. This storm has become a national story and has inspired people from all over the country to help by sending donations to those affected. So, with a natural disaster of this magnitude, it must be difficult for an insurance company to proceed with claims and such. Looking back at the insurance nightmare that was Hurricane Katrina, one can assume that there will be serious coverage and claims issues once the flood dries up in Texas.
Residents with only a homeowner’s insurance policy might be out of luck when it comes time to collect their coverage. Most of the damage done to homes and other properties in Texas so far has been a result of flooding. Most home insurance policies do not offer coverage for flooding. It is usually a separate policy altogether. Some people do not know this and expect coverage from their insurer when their house floods. They are then stuck paying out of pocket to fix thousands upon thousands of dollars worth of damage to their home.
Residents with flood insurance and/or hurricane insurance will be in a better place when it is all said and done. However, that will take some time. Since the insurance companies in Texas will have thousands of claims to deal with, it could be years before the residents receive the reimbursements promised to them in their policies. The insurance companies will be stuck paying for so much damage that they simply will not be able to help everyone at once. Things will get messy. People are going to need their insurance coverage to help them buy a new house or a new car or anything else that was lost to the hurricane.
After all of the policies have been satisfied, the primary insurance companies in Texas will have been hit very hard by the hurricane. Insurance companies always try to avoid risky situations. But, with a natural disaster like Hurricane Harvey, there is no way around the risk. The fact that many people will not receive insurance coverage for their damaged property is very disheartening and seems unfair. It is also scary to think that most ins