Katrina cottages on the way
Insureds:
No, the above headline is not from The Onion.
With the approach of Christmas — a story about, among other things, not having a home (or health insurance, when you think about it) — I pass along an AP story about the Department of Homeland Security, FEMA’s parent, announcing a $280 million pilot program to replace FEMA trailers with module homes.
“The cottages are safer, more-permanent structures than travel trailers or mobile homes. The modular homes look like traditional houses, but are smaller.”
Sen. Lott calls them a “giant step forward” in Mississippi’s recovery.
” ‘Helping people to live in a real home will speed Mississippi’s reconstruction efforts, not just in terms of restoring physical structures, but also by helping to improve the spirits of those still without a good home,’ ” Lott said in a news release.
Listen, I love Sen. Lott these days, and ITP is happy about the homes. You literally cannot swing a dead possum around those FEMA trailers. I would also understand, I guess, even needing semi-permanent modular homes 16 months after Katrina, given the magnitude of the storm and the tight market for contractors and construction materials.
But, you know ITP. As a condition of getting a modular home, if I’m FEMA, I would ask: 1. Did you have insurance? 2. What happened to your claim? Without the data, we have no idea about whether we’ve got a problem getting claims paid.
And remember, insurers say they will pay $45 billion in Katrina related claims (ITP will be checking), but total economic damage of Katrina, according to Swiss Re, was $135 billion. That’s a $90 billion gap. I-Fans, $90 billion is big money in New York City, let alone Louisiana and Mississippi. Insured damage from 9/11 was a mere $21 billion — and you know what construction costs in New York. A tenth of $90 billion is big money, I mean the difference between ruin and recovery. I’m not saying insurers owe that and didn’t pay. Clearly not, or not all of it.
But think about it. We’re not even asking.
Oh, and I’m not crazy about the spectacle of Gulf states fighting over what, by comparison, are scaps.
“The nation’s five Gulf Coast states competed for a total of $400 million in funds, with Mississippi slated to receive 70 percent. Louisiana, by comparison, will get $75 million, leaving officials there complaining the Bayou state “got the short end of the stick.”
“Under FEMA’s upside-down decision-making, Louisiana gets the short end of the stick for alternative-housing programs by almost 4-to-1,” U.S. Sen. Mary Landrieu said in a statement.
Mississippi Gov. Haley Barbour issued a statement late Thursday saying he’s “delighted….”
By the way, ITP doesn’t need a political-science degree to figure out what’s going on here. I don’t mean to be naive, but put it this way: Do not let ITP War Eagle find out that relief efforts are being politicized.
ITP is sorry to be a downer before Christmas and will bring the yucks for New Year’s.
December 22nd, 2006 at 9:21 am
Mississippi Senators have done more to get relief for Lousiana. Initially, Louisian received the lion’s share of relief money. Mississippi has been more effective in getting relief money to those who need. The block grants that homeowners can apply for help are already in it’s second phase in Mississippi. I believe Louisiana just started their Road Home program for the same type of block grants.
From reading the Times-Picayune, the Louisiana state government doesn’t appear to be near as effective as Mississippi. This is a broad generalization but Mississippi actually seems to be spending the relief money in those areas directly affected by Katrina. Whereas Louisiana seems to be spreading it all over the state. A few days ago, it was reported that Louisiana’s state legislature only allocated 38% of monies to be used for infrastructure in New Orleans
In comparison, Mississippi’s state government has allocated the lion’s share to us on the Gulf Coast.
If it is to be politicized: it should be based on the comparison of the effectiveness of state and local governments.
We may not wear shoes here in Mississippi
but we do have effective officials at both the local and state levels.
By the way, those Katrina Cottage’s are a big hit in the rest of the country. They are small, around 400 square feet but are a better alternative to those FEMA trailers. Plus, they are quick to build and cost a little over twice as much as the FEMA trailers.
December 22nd, 2006 at 9:25 am
Seawitch, nice one. I suppose I agree, but being effective and having political ties are two different matters. From what I hear, though, the Barbour government isn’t just connected, but also has done a good job managing the government side of things. It doesn’t seem to be doing much on the insurance front, however. Thank you again for the post and happy holidays.
December 28th, 2006 at 10:09 am
This post will be included in today’s edition of the “Carnival of Hurricane Relief.” See:
http://www.cehwiedel.com/cohr/
December 28th, 2006 at 10:30 am
[…] Katrina cottages on the wayGood news, sort of: more permanent modular homes are scheduled to replace some of the teensy FEMA trailers on the Gulf Coast. But there are gotchas… […]