REALITY: Insurers pay the vast majority of homeowners’ catastrophe losses. The bulk of government disaster assistance from FEMA goes to public infrastructure and local governments, not individuals.
- A graphic analysis of federal funding related to Hurricane Katrina compared to private insurance further illustrates where government funds are actually spent.
Sources:
Department of Homeland Security, Office of the Federal Coordinator of Gulf Coat Rebuilding (OFCGCR);
Katrina Hurricane Disaster Weekly Report (FEMA), March 2, 2006;
The White House, Press Briefing, March 6, 2006; Bruce Katz, Matt Fellowes,
and Mia Mabanta, 2006; “the Katrina Index” Brookings Institution.
Note: Allocated funds in spending categories were estimated based on
Categories provided by the OFCGCR.