It’s a year today since Hurricane Katrina ripped a path through Louisiana and Mississippi, causing severe flooding in New Orleans and overall damage of more than $US30 billion ($39.5 billion). 

Insurers have been faced with an enormous task but the Insurance Information Institute reports that 95% of homeowner claims have now been settled.

That doesn’t mean New Orleans and the surrounding regions are looking like anything other than a disaster area. The hurricane aftermath revealed very high levels of underinsurance and non-insurance. There have also been disputes with insurers over flood exclusions in their policies.

However, just under a million homeowners have agreed on the extent of damage and the likely cost of repair. Those settlements amount to nearly $US15.5 billion ($20.41 billion). Institute CEO Robert Hartwig says the payments are helping to return New Orleans and smaller communities to their former glory.

“The billions of dollars in claims settlements are playing a key role in the recovery of the Gulf Coast,” he said.

There is still plenty of work to be done. The institute figures do not include claims lodged with such government-owned insurers as the Federal Emergency Management Agency’s National Flood Insurance Scheme.