(June 20, 2007)
At the urging of insurance companies, Louisiana bit the bullet and adopted tough new building codes. It was part of an effort to draw these companies back to the state. But two years after Katrina, a new company writing wind and hail coverage has yet to be found.
Meanwhile, mobile home owners in Lafourche are told to elevate or risk being cut off from utility service.
We’re doing our part, and now it’s time for insurance companies to do their part. They could be spending money to expand coverage, but they instead spend huge sums on television advertising. They used to say one dollar could feed a starving child, well one television commercial could repair a hurricane victim’s home.
Insurance companies are like compulsive gamblers. They want to come back to the table only when the deck is stacked in their favor. Lets reward those who play with the cards at hand. Instead of just offering a matching $10 million to any insurance company who starts writing coverage in Louisiana again, we should offer more to the first company. Subsequently, less money should be offered to companies who enter the game later.
It’s time we cut the cards.