NU Online News Service

The tornados that wreaked havoc through the South this past weekend were an insurance catastrophe event, said Property Claim Services, a unit of Insurance Services Office, in Jersey City, N.J.

While no insured loss totals were available, PCS generally declares a catastrophe when there is an insured loss of more than $25 million and an impact on a significant number of policyholders and insurance carriers.

AIR Worldwide modeling firm in Boston said it is surveying the tornado damage and noted a statement from Georgia State Insurance Commissioner John Oxendine, who gave a very preliminary damage estimate of between $150 million to $200 million, most of it occurring at the Georgia World Congress Center.

On late Monday, Mr. Oxendine issued a statement saying the insured losses reached an estimated $250 million.

This past weekend saw also saw a huge construction accident with acrane toppling over in New York damaging seven buildings, but that event was not rated a cat by PCS.

One tornado touched down in Atlanta on Friday night, wrecking office towers and causing millions of dollars in damage, part of a system that caused several deaths in Georgia and North Carolina.

The Georgia Emergency Management Agency said the tornado that struck Friday night blew out windows and damaged roofs of dozens of buildings, including the CNN headquarters. About 107,000 customers were without power, according to Georgia Power, and hundreds were evacuated from damaged buildings.

At least two people were killed and another 20 injured.

There was significant damage reported from neighboring counties from the storm cell that affected the region. The agency said all portions of the state suffered damage, except west central and southwest Georgia.

Up to 60 homes were affected in Bartow County, six of which were destroyed, and two schools were heavily damaged. Twenty homes were damaged in Floyd County, 10 of which were destroyed.

In Fulton County, the agency reported 170 homes and public buildings were affected, but the extent of damage was not available. Thirty-six homes were impacted in Polk County, with six destroyed.

Numerous other businesses reported damages throughout the state.

By Sunday night the agency reported that 2,358 claims had been filed with insurers.

Thousands were without power throughout counties touched by tornados in South Carolina also. There were numerous reports of roof damage and trees felled.

The National Weather Service said that tornados that touched down in Georgia topped 150 mph winds.

On Saturday in New York, a construction crane broke loose from its supports, killing up to six people, four of them construction workers who were raising the crane atop a high-rise building located at 2nd Avenue and 51st Street on the East side of Manhattan.

The New York City Office of Emergency Management said 17 buildings in the area have been vacated, affecting 300 residents. Seven buildings sustained damage when the crane broke apart after hitting a building on 50th Street. At least five buildings sustained major damage and collapse, while the other two were still being inspected.

Gary Kerney, assistant vice president of Property Claim Services, said, regarding the storms that hit Georgia and South Carolina, "We are evaluating the extent of damage in other areas from the storm system that spawned the tornado in downtown Atlanta on Friday.

"We have reports of damage from severe weather in areas of the Southeast on Saturday into Sunday. PCS believes this is a separate storm system and we are evaluating reports from this region..."

On the New York crane collapse he continued, "Regarding the crane collapse in New York City on Saturday, it is unlikely that the number of insured property damage claims emanating from that incident will trigger the assignment of a serial number. However, we are still reviewing information regarding the aftermath of the collapse and the extent of damage in the surrounding buildings."

Special Reports /

Weekend Tornadoes Rated an Insurance Catastrophe

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