Risk Management Solutions today announced that insured lossesfrom Hurricane Katrina are estimated to be $40-to-$60 billion, ofwhich $15-to-$25 billion is related to the Great New OrleansFlood.

According to Newark, Calif.-based RMS, a provider of productsand services for catastrophe risk management, total economic lossesare now expected to exceed $125 billion. On September 2, RMSreleased a preliminary insured loss estimate of $20-to-$35 billion(excluding flood losses in New Orleans). At that time, totaleconomic losses were estimated at over $100 billion. The revisedestimates reflect an analysis that RMS has performed to model andestimate the insured and uninsured loss components of theflood.

Standard commercial and residential policies issued by privateinsurers cover wind damage, but flood is excluded, RMS noted.Businesses and homeowners can obtain coverage with fixed limitsthrough the National Flood Insurance Program (NFIP). Private sectorinsurers also offer coverage in excess of the limits provided bythe NFIP, which is commonly purchased for high-value commercialproperties or homes.

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