Isabel Loss Estimate Jumps To $1.17 Billion

By Gary Mogel

NU Online News Service, Oct. 2, 4:20 p.m. EDT?Loss estimates from Hurricane Isabel are increasing over initial projections of $1 billion, according to insurer data organizations and individual insurer estimates.

Jersey City, N.J.-based Insurance Services Office's Property Claim Services Unit said in a statement that insurers are expected to pay about $1.17 billion in losses related to the Sept. 18-19 storm that struck several Middle Atlantic states. Total anticipated claims are 458,000, according to ISO.

Previous estimates by New York-based Insurance Information Institute and Newark, Calif.-based Risk Management Solutions, Inc. were $1 billion in insured losses.

ISO spokesperson Dave Dasgupta explained that the PCS estimate is based on a survey of actual claims that have been received by insurers, and then making a projection of the total losses that will have to be paid.

"The estimates from other organizations are based on computer-generated catastrophe models," Mr. Dasgupta said. "They did not talk to the insurance companies."

One insurer alone--Nationwide Mutual Insurance Co.?on Oct. 1 estimated that it will have 70,000 claims related to Hurricane Isabel, and that its insured losses could reach $235.5 million.

Nationwide's projected breakdown of the losses by line of coverage are $214 million for homeowners claims, $12.5 million in auto claims, $1.1 million in boat claims, and $7.9 million in commercial claims.

The Columbus, Ohio-based insurer said in a statement that wind and water damage were a leading cause of losses for many homeowners. As of Tuesday, policyholders had reported 56,092 claims.

"Our preliminary loss projections indicate that Virginia was hardest hit," noted Ken Enscoe, Nationwide's director of catastrophe claims operations. "We project more than 900 large loss homeowners claims--losses of $25,000 or more--and a total of 30,000 homeowners claims in that state."

According to ISO, the states that suffered the most losses are Virginia ($450 million), Maryland including Washington, D.C. ($410 million), and North Carolina ($170 million).

Special Reports /

Isabel Loss Estimate Jumps To $1.17 Billion

Related Stories

Recommended For You