According to a new report from the New Orleans Inspector General’s Office, the city has made progress on many problems cited in a 2012 evaluation that cited failures to have accurate information on the value of its property and warned that its insurance program might cause problems with federal funding.
The city insured about $813 million worth of property at a cost of about $2.2 million in 2015, according to the report. Back in 2012, a report from Inspector General Ed Quatrevaux’s office made five recommendations to city officials to address problems evaluators found with the way the city was handling its insurance coverage.
The city was granted a certification that allows it to comply with FEMA guidelines for properties that have been rebuilt after a disaster, something that was not in place when the initial report was written.
“Evaluators conducting the follow-up found that the city made improvements to its property and casualty insurance program since hiring a risk manager in June 2014,” Quatrevaux told The New Orleans Advocate. “However, evaluators found that the city did not develop a complete and accurate statement of values or obtain appraisals on any insured properties.
“The accuracy of property values and building construction information play an important role in marketing the city’s property to the insurance markets. Successful completion of these tasks could allow the city to achieve additional savings on insurance premiums,” Quatrevaux added.
City officials also made corrections to their list of insured properties. However, the report found that many properties still had incorrect or incomplete information, including 2.6 percent of properties that did not have information about the building’s value and 71 percent that did not have construction codes listed.
Although the city had told the Inspector General’s Office it would complete appraisals of all properties by 2013, evaluators found “no appraisals had been conducted since the original report was issued.” City officials said the city did not have the money for the appraisals, which were expected to run into the “low six figures.”