Disasters raise insurance
Bill proposed to help citizens and businesses
By Ian B. McAndrew, contributing writer
Posted on September 25, 2006

The average college student is very busy and has many things to think about: classes, jobs, assignments and clubs. The last thing on any college students’ mind is probably a natural disaster.

In 2005, Hurricane Katrina swept through New Orleans, displacing thousands overnight and creating between $40 billion and $60 billion worth of property damage to insurers.

The added strain that natural disasters put on commercial businesses and private residences can adequately affect the ability for people to pay for that coverage, leaving many uninsured and at greater risk.

Consequently, Carolyn Maloney (D-N.Y.) submitted to the congressional Committee on Financial Services a bill proposing to enact a Federal program to provide for the reinsuring of state national disaster insurance programs. Entitled, “Natural Catastrophe Insurance Act of 2005,” the act proposes that the federal government grant aid to those affected by a wide range of natural disasters, ranging from windstorms to earthquakes.

The bill will also provide a way for people to get back on their feet, while trying to eliminate the bureaucratic red tape of government agencies like FEMA.

So far, there is no date set in the near future for congressional voting on the bill.

If Rockingham Hall burnt down, sophomore Alex Alarif would be “pissed.” To get his life back in order, he would have to get a job and repurchase everything, he said. His greatest loss would be his laptop.

“I would lose all my saved information [and] have to use a school computer,” Alarif said. “I wouldn’t be able to continue entertainment and professional work.” But, Alarif said there’s “no use in crying over spilled milk.”

Alex Adjei, director of JMU’s Off-Campus Life, hosts “Apartment 101,” a program designed to ease the transition from living on campus to off campus.

Adjei explained that if students are considering moving off campus, then they must be aware of the lease and the insurance policies that they sign.

“Leases are legally binding contracts,” Adjei said. “And when entered into one, you must follow it exactly.”

 Adjei recommends purchasing insurance.

 “It is a good idea, we make it a point to be covered and it is a very important issue concerning the students,” he said.

The Virginia Residential Landlord and Tenant Act protects the tenant from unfair rental agreements by requiring that all tenants be insured either through the landlord’s rental or security deposits, or through a third party insurance company and restricting the amount to no greater than the sum of two months’ rent.