Biloxi mayor looking for new insurance policy
Published 11:01 pm Monday, July 3, 2006
Mayor A.J. Holloway is shopping for a new insurance policy.
Last year, the city took out a business interruption policy two months before Hurricane Katrina struck.
Under that policy, which was to cover casino tax revenue for up to six months, the city paid $92,000 for the coverage and now could gain $10 million.
So far, Biloxi has received about $7.5 million on that policy and is pursuing the rest.
That policy can’t be renewed, so now Holloway is trying to find another way to insure the city. The only business interruption policy offered would cost $1 million and would pay off only if a category 5 storm struck within 50 miles of Biloxi.
“It’s going to be a long shot at best,” said Vincent Creel, who managed public affairs for the city.
“To be honest, we’re not near the level for hurricane preparedness that we were at this time last year,” he added.
Holloway plans to ask the city council Wednesday to consider buying excess amounts for its property coverage.
Last year, Biloxi had a total $30 million in property insurance divided into two layers — $10 million for wind, fire and flood, and $20 million for everything else except flood.
“We’re in the same boat as everybody else — wind vs. water,” Creel said.