Is there a list of Insurance Companies that did not honor Katrina policy Holders?

Question

If they did not honor Policy victims, why are they allowed to continue to exist in other states?

Answer 1

Hate to say this but most people that buy flood insurance do it because it is required by their lender and they only purchase enough to cover the loan, not enough to rebuild their home.  They come in "kicking & screaming" because they are being forced into it & hate it.  So if someone only owed $50,000 & only purchased $50,000 flood coverage on their $200,000 home, if they have a flood, the insurance will apply the co-insurance clause (if you are not insured to 80% of the cost to rebuild in this case $160,000, up to the maximum available - $250,000 - the insurance will only pay their % of the loss - in this case 5/16 of $50,000, so they won't even pay the full $50,000), less their deductible, leaving the insured with a flooded out house, still owing something on the loan & nothing to start over.  It is unfortunately the insureds own fault that they didn't purchase enough coverage and not reading the policy.

I had one person recently come in for flood insurance that the bank was requiring & insisted that he get only the mortgage amount.  I explained the co-insurance clause, he told me in no uncertain terms "if my house gets flooded, I have no problem walking away from it, I just want to satify the bank requirement."

I do have some insureds that take flood insurance seriously & want to be protected properly, but not many.  Most people only buy it if their lender requires it, if they don't have a mortgage, they usually won't buy it because "my house never flooded", until the flood comes & they are blaming everyone else for not being covered.

Answer 2

No.  

Your premise is faulty - they honored the terms of their policies.  That's why they exist in other states.

If you don't buy flood insurance, you don't have flood coverage.   Period.