Hurricane Katrina Claims Reopened Due to Faulty Adjusting

Faulty insurance claims adjusting work is being linked to the increased number of reopened insurance cases involving Hurricane Katrina in 2005.

Source: Source: Best's Review | Published on July 6, 2010

Policyholders are using the appraisal clause in their homeowners' policies to reopen their cases, reports Best's Review.

“The reason we’re seeing so much of it, a lot of it goes back to bad adjusting work. The job wasn’t done correctly in the first place,” said Drew Powell, general adjuster and manager for Davidson & Co. in Alabama.

Alabama, Mississippi, and Louisiana were responsible for much of the more than $47 billion worth of insured losses to the insurance industry from the hurricane, which hit in August 2005.