The US state department has announced it is investigating companies who allegedly discriminated against New York property owners.

The probes began following a series of insurance "horror stories" from people who in New York. At a hearing yesterday, people told of slow payments after Sept 11, cancelled policies, and doubled premiums.

"Should anything happen in lower Manhattan again, we're basically defenseless," said Gregory Cooper, a New York apartment owner.

Robert Hartwig, vice president of the trade group Insurance Information Institute, defended the industry's post-Sept. 11 performance. "Despite the unprecedented nature and magnitude of insured losses arising from the Sept. 11 attack, insurers quickly rose to the challenge," Hartwig said.

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