Big Problem Arises For Katrina CUs: NoFlood Insurance
SAN FRANCISCO - (09/28/05) - Even while credit union executivesare digging out from Hurricane Katrina, and now Hurricane Rita, anew problem has emerged: many of the damaged credit unions do nothave flood insurance. "Most of the credit unions in Louisiana andMississippi did not have flood insurance because they were not in aflood plain," said John Franklin, chief operating officer for CUNA,who has been organizing the trade association's emergency reliefefforts. "When the levees broke the damage caused was flooddamage." Franklin, speaking during CUNA Future Forum, said only 18affected credit unions and Louisiana and one in Mississippi hadflood insurance, leaving dozens of institutions that had priorityruined or damaged without coverage.