Hurricane Katrina: Legal Issues - Columbus School of Law

depending on the policy terms, may also pay for the cost of temporarily renting a replacement vehicle.
Comprehensive coverage usually covers loss caused by fire, windstorm, flood, falling objects (trees), theft and
vandalism, as well as other causes. Thus, most comprehensive policies would cover loss to an automobile.
Will collision policies cover damage or destruction to a car by Hurricane Katrina?
Loss may be covered if the cause of the loss to the vehicle can be characterized as a collision. Collision is often
defined in policies to include the upset of your vehicle or its impact with another vehicle or object.
If a loss is covered, what amount will the policy pay?
If a car was damaged, the owner may be covered not only for the cost to repair it but also for the cost of renting a
vehicle while the car is being repaired.
Commercial Property Insurance / Business Interruption Insurance
What hurricane-related losses are likely to be covered by commercial property insurance?
Commercial property insurance policy terms vary greatly, so each owner must refer to the terms of the individual
policy. Many of the same issues discussed above, such as coverage for loss caused by wind versus flooding, will also
arise under commercial property insurance. Many commercial property insurance policies also provide business
interruption coverage, which covers lost income resulting from property loss caused by a covered peril. Some
expenses incurred in restoring business operations may be also covered. Some policies may also cover operating
expenses, such as utility expenses or salaries. Even if a business did not suffer property damage, the policy may pay
for loss that was caused by property loss to a key supplier or key customer location. Some policies also provide
coverage if income loss results because the government denies access to property because of a covered loss to
property owned by another. In order to file a claim for lost business income, an insured should substantiate losses
with business records demonstrating income and expenses. You may need to retain an accounting firm to assist you.
You may be able to negotiate with your insurer in order to get an early partial payment for lost income. Do not enter
into any final settlement agreement until your total losses are fully developed. [See American Bar Association,
Business Interruption Checklist (March 11, 2002) at
http://www.abanet.org/litigation/committee/insurance/businesschecklist.pdf].
Life Insurance
There are two basic kinds of life insurance policies - individual and employer-sponsored group policies. Individual
policies typically are obtained by people on their own, often through an insurance agent. Group coverage typically is
obtained as part of an employee's benefits package. Many employers provide coverage with death benefit protection
equal to a worker's salary or twice his or her salary.
What steps should a beneficiary take to collect on a life insurance policy?
The beneficiary should call the agent or company on the policy or call the employer if the policy was part of an
employee’s benefits package. The company or employer will provide forms that should be filled out and returned
with a certified copy of the deceased's death certificate.
What if a beneficiary cannot locate the policy?
A beneficiary who cannot find the actual policy should try to find the agent or company that the deceased may have