hurricane

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If people expect the government to bail them out, they will under-insure and over-build in hazard-prone areas.


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Six years have passed since Hurricane Katrina struck the U.S. gulf coast, killing between 1,300 and 1,500 people and causing more than $57 billion (U.S.) in insured losses. Although the peril was a hurricane, Canada’s provinces can draw an important lesson from Katrina when it comes to insurance coverage for disasters, particularly when it comes to earthquakes.