Hurricane · 2005

Hurricane Katrina

August 29, 2005 · LA, MS, AL, FL

$186 billion (inflation-adjusted to 2023)

Total Damage

1,000,000+

Homes Flooded

$41 billion

Insured Losses

$12 billion

FEMA Grants

What Happened

Katrina made landfall as a Category 3 hurricane with Category 5 storm surge. The catastrophic failure of the New Orleans levee system — not the storm itself — caused most damage. 80% of New Orleans flooded, with some areas under 15+ feet of water for weeks. The storm exposed critical gaps in flood insurance coverage and FEMA disaster response.

Rainfall Record

10–15 inches; catastrophic damage primarily from storm surge and levee failures, not rainfall

Affected Cities & States

States

LAMSALFL

Primary Cities

New Orleans
Biloxi
Gulfport
Mobile

Key Lessons for Homeowners

1
Levee failure is not 'flooding' under some policy definitions — thousands of claims were disputed on this basis
2
FEMA's initial response was widely criticized — have a 72-hour self-sufficiency plan
3
NFIP's $250,000 building limit is insufficient for mid-range New Orleans homes valued $300K–$700K
4
Extended flooding (weeks vs days) causes exponentially greater structural damage — longer flooded = higher cost

Damage & Recovery by the Numbers

Total Economic Damage: $186 billion (inflation-adjusted to 2023)
Insured Losses: $41 billion
Homes Flooded: 1,000,000+
FEMA Grants Issued: $12 billion
FEMA Declaration #: DR-1603

Official Resources

FEMA Declaration Number: DR-1603

Apply for federal disaster assistance at DisasterAssistance.gov — use declaration number above to look up your eligibility.

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Other Major Events

Hurricane Katrina — Frequently Asked Questions

: 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.
: 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.
: 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.
: 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.

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What Happened

Rainfall Record

10–15 inches; catastrophic damage primarily from storm surge and levee failures, not rainfall

Key Lessons for Homeowners

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

Hurricane Katrina — Frequently Asked Questions

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.

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.

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.

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.