Tag: OIG Report

The “F” word hits the road – finds Wall is dead end Street (Part 2 of 3)

Wind sucks, wind damage to your house sucks, having coverage denied because someone can’t figure out how much damage wind did to your house sucks, having one policy for wind damage and another for flooding sucks – but what really sucks is the “F” word doesn’t know a suckin, f’n thing about wind damage from a hurricane and if you don’t believe that, read the report. JMHO

Final statistically unreliable report- Hurricane Katrina: Wind Versus Flood Issues.

When Congress passed the Department of Homeland Security Appropriations Act 2007, language was added requiring the OIG to investigate whether and to what extent insurance companies participating in the NFIP improperly attributed damages from Hurricane Katrina to flooding rather than to windstorms covered under homeowner policies or wind insurance pools.

There were 209,404 NFIP flood insurance claims filed for Hurricane Katrina, according to the table on page 6 of the OIG report.

  • 98-100 paid claims were reviewed prior to the interim report released July 2007.
  • The number of paid claims reviewed increased to 131 – .0062% of total claims -in the final report.
  • 123 of the 131 paid claims also received payment for wind damage – 94% of those reviewed

Sop, who actually conducts investigative GAAS audits and prior to specializing in construction performed Single audits for certain state governemntal entities, is going to follow with our collective opinion on the disconnect we found between reported data and the OIG’s findings (Results of Review, page 5) – hopefully explaining how data show 1.5 % of the NFIP claims paid for wind damage while the related finding states, Based on the files in our sample, NFIP did not pay for wind damage…duh!

However, because the sampling technique selected by the OIG is indicative of the larger problem created by the “F” word following Hurricane Katina, it is important to point out the 131 paid claims were a Judgmental Sample. Continue reading “The “F” word hits the road – finds Wall is dead end Street (Part 2 of 3)”

The "F" word hits the road – finds Wall is dead end Street (Part 2 of 3)

Wind sucks, wind damage to your house sucks, having coverage denied because someone can’t figure out how much damage wind did to your house sucks, having one policy for wind damage and another for flooding sucks – but what really sucks is the “F” word doesn’t know a suckin, f’n thing about wind damage from a hurricane and if you don’t believe that, read the report. JMHO

Final statistically unreliable report- Hurricane Katrina: Wind Versus Flood Issues.

When Congress passed the Department of Homeland Security Appropriations Act 2007, language was added requiring the OIG to investigate whether and to what extent insurance companies participating in the NFIP improperly attributed damages from Hurricane Katrina to flooding rather than to windstorms covered under homeowner policies or wind insurance pools.

There were 209,404 NFIP flood insurance claims filed for Hurricane Katrina, according to the table on page 6 of the OIG report.

  • 98-100 paid claims were reviewed prior to the interim report released July 2007.
  • The number of paid claims reviewed increased to 131 – .0062% of total claims -in the final report.
  • 123 of the 131 paid claims also received payment for wind damage – 94% of those reviewed

Sop, who actually conducts investigative GAAS audits and prior to specializing in construction performed Single audits for certain state governemntal entities, is going to follow with our collective opinion on the disconnect we found between reported data and the OIG’s findings (Results of Review, page 5) – hopefully explaining how data show 1.5 % of the NFIP claims paid for wind damage while the related finding states, Based on the files in our sample, NFIP did not pay for wind damage…duh!

However, because the sampling technique selected by the OIG is indicative of the larger problem created by the “F” word following Hurricane Katina, it is important to point out the 131 paid claims were a Judgmental Sample. Continue reading “The "F" word hits the road – finds Wall is dead end Street (Part 2 of 3)”