Insurance Costs in New Orleans

Aside from the fact that insurance companies posted record profits last year--despite claims they would implode under the weight of Katrina payouts, consider this: insurance claims are typically paid out as a balance minus whatever the government pays out, correct? So if FEMA reimburses you for damage to your property, that payout is subtracted from whatever the insurance company decides it owes you. So in effect, for the insured, government payouts are just a subsidy for the insurance companie.

I have absolutely no sympathy for insurance companies. They may cry a river, but their business is about as risky as running a Casino.