Posted on: Tuesday, September 21, 2004
Record bill likely for hurricanes
Associated Press
NEW YORK — With an estimated one in five Florida homes damaged by this year's hurricanes, the payout by insurance companies could be higher than it was for the nation's most costly storm ever, Hurricane Andrew, an insurance industry group says.
Associated Press The group has estimated that the insured damages from Hurricane Charley will reach $6.8 billion and from Hurricane Frances, $4 billion to $5 billion. It hasn't yet released figures on the latest storm, Hurricane Ivan, but Fitch Ratings has put the tally for Ivan in a range of $4 billion to $10 billion.
The figures do not include damage from flooding, which isn't covered by private companies, said Loretta Worters, an III spokeswoman. The federal government underwrites flood insurance, but only about one-quarter of households buy it, the III says.
Florida has been the hardest hit state in this year's hurricane season, although Ivan also caused extensive damage in Louisiana and Alabama and other southern states.
The $15.5 billion paid out by the industry for Hurricane Andrew damage would come to more than $20 billion if adjusted for today's prices.
The Insurance Information Institute said it expects total claims from this year's hurricanes to exceed 1 million, surpassing the 700,000 filed for Hurricane Andrew.
The III said that some 15,000 insurance company claims adjusters were working in Florida, with others in Alabama and other affected areas.
The Insurance Information Institute, which is based in New York, said over the weekend that it expects the industry "will pay out more than the $15.5 billion in insurance claims" that resulted from Andrew, which devastated southern states in 1992.
A condominium unit on Navarre Beach, Fla., was heavily damaged after Hurricane Ivan plowed through the area. Florida has been the hardest hit state in this year's hurricane season.
