Wednesday, October 25, 2006

Whites challenged Katrina settlements more - U.S. Business - MSNBC.com

Whites challenged Katrina settlements more - U.S. Business - MSNBC.com: Though poor and minority neighborhoods suffered the brunt of Katrina’s fury, residents living in white neighborhoods have been three times as likely as homeowners in black neighborhoods to seek state help in resolving insurance disputes, according to an Associated Press computer analysis.

The analysis of Louisiana’s insurance complaints settled in the first year after Katrina highlights a cold, hard truth exposed by Katrina’s winds and waters: People of color and modest means, who often need the most help after a major disaster, are disconnected from the government institutions that can provide it, or distrustful of those in power.

In Louisiana, more than 8,000 residents have filed Katrina-related complaints with the state insurance office. Using open records law, AP obtained the files of more than 3,000 complaints that have already been settled and analyzed the outcomes by the demographics of the victims’ current zip code neighborhood.

Nearly 75 percent of the settled cases were filed by residents currently living in predominantly white neighborhoods. Just 25 percent were filed by households in majority-black zip codes, the analysis found.

The analysis also suggests income was a factor. The average resident who sought state help lives in a neighborhood with a median household income of $39,709, compared with the statewide median of $32,566 in the 2000 Census.