U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $6.8 billion for insured property losses from Hurricane Charley, according to preliminary estimates by ISO’s Property Claim Services (PCS) unit.
Hurricane Charley, a Category 4 hurricane, smashed through southwest and central Florida on Aug. 13, leaving a swath of destruction in its wake with winds reaching up to 145 miles an hour. Insured property losses in Florida stand at $6.755 billion.
Hurricane Charley lost its punch by the time it reached the coastal areas of North Carolina and South Carolina on Aug. 14, which suffered insured losses of $25 million and $20 million, respectively.
Charley is the second costliest hurricane after Hurricane Andrew, which hit south Florida in 1992, causing insured losses of $20.3 billion in inflation-adjusted dollars.
Florida accounts for 605,000 of the nearly 622,000 Hurricane Charley claims that insurers expect to receive from homeowners and businesses for insured losses to personal and commercial property and vehicles.
PCS will resurvey insurers in 60 days as more claims are filed and existing claims are amended. It will revise its estimate if necessary. PCS resurveys all catastrophes exceeding $250 million or whenever specific circumstances relating to a catastrophe require additional analysis.
ISO’s PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty policyholders and insurers.
PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss-adjustment expenses.
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