Hurricane Katrina

Hurricane Katrina — Frequently Asked Questions

How much damage did Hurricane Katrina cause?

Hurricane Katrina (2005) caused $186 billion (inflation-adjusted to 2023) in total damages, with $41 billion in insured losses. Approximately 1,000,000+ homes were flooded. FEMA issued $12 billion in individual assistance grants to affected homeowners.

What are the key lessons from Hurricane Katrina for homeowners?

Key lessons from Hurricane Katrina: Levee failure is not 'flooding' under some policy definitions — thousands of claims were disputed on this basis; FEMA's initial response was widely criticized — have a 72-hour self-sufficiency plan; NFIP's $250,000 building limit is insufficient for mid-range New Orleans homes valued $300K–$700K; Extended flooding (weeks vs days) causes exponentially greater structural damage — longer flooded = higher cost.

Does homeowners insurance cover damage from events like Hurricane Katrina?

Standard homeowners insurance does NOT cover flood damage from events like Hurricane Katrina. This type of damage — surface water flooding from hurricanes and storm surge — requires separate NFIP (National Flood Insurance Program) or private flood insurance. FEMA disaster assistance (average $12 billion per event) provides limited supplemental help for uninsured losses, but is far below typical replacement costs.

How do I apply for FEMA assistance after a disaster like Hurricane Katrina?

Apply at DisasterAssistance.gov or call 1-800-621-3362 within 60 days of the federal disaster declaration for your county. You will need your Social Security number, property address, insurance policy information, and a description of damages. FEMA will schedule a home inspection. Processing typically takes 1-2 weeks for initial determination. If denied, you have 60 days to appeal with additional documentation.