The United States mainland could be subject to a one-two punch next week as two tropical storm systems gear-up and take aim at the Atlantic and Gulf coasts.

Tropical Storm Gustav passed Jamaica and was expected to strengthen to hurricane status. The National Weather Service's National Hurricane Center said chances are the storm could strengthen to a Category 3 storm with sustained winds up to 115 mph.

Meanwhile, Tropical Storm Hanna formed in the Atlantic about 305 miles northeast of the northern Leeward Islands with sustained winds of 40 mph.

Both storms are expected to intensify, with Hanna, the eighth named storm of the season, reaching hurricane status by Sunday.

Gustav has caught the attention of the insurance industry after taking more than 20 lives Tuesday when it hit Haiti. Several insurers have issued public statements telling customers to be prepared and that they stand ready to help.

Louisiana Commissioner of Insurance Jim Donelon held a news conference today and issued a statement telling people the department is ready to implement emergency plans should Gustav strike the state.

"The property destruction caused by [Hurricanes Katrina and Rita in 2005] forced us to get creative and think of innovative plans for working with consumers and the insurance industry," said Mr. Donelon. "I will continually meet with our staff to ensure the continuity of operations of this department if this or any other hurricane impacts our state."

While there is a high amount of uncertainty about Gustav's impact zone, it is likely to affect oil and gas production in the Gulf, said Peter Dailey, director of atmospheric science at the catastrophe modeling firm AIR Worldwide. He said oil workers have already begun evacuating rigs in the Gulf.

The National Weather Service's five-day forecast for Gustav calls for it to make landfall anywhere between the Texas Gulf Coast and the Florida Panhandle with Louisiana in the center.

Steve E. Smith, president of Property Solutions, a unit of reinsurance broker Carvill ReAdvisory, said U.S. landfall is as far west as Galveston, Texas, to the Florida Panhandle, and will pose a significant threat to the Gulf oil fields.

"The potential for Gustav to be a major hurricane at landfall is significant," he said in a statement.

Hanna, he noted, is not expected to be a threat to land for the next three to five days, but could threaten the U.S. East Coast by the end of the week.

Neena Saith, catastrophe response manager at Risk Management Solutions, noted that Gustav should pass the Cayman Islands as a Category 1 hurricane before heading into the Gulf. It is on a similar path as Hurricane Ivan in 2004, but that was a Category 4 storm when it passed through that area.

"The Gulf Coast is the second highest area at risk of U.S. hurricanes after Florida and has experienced a number of near misses in recent years," said Ms. Saith in a statement.

In all five states threatened by the storms, State Farm is the number one insurer with all flood, home and auto lines combined. The entire company's direct premium written exposure is less than 10 percent in Florida and Texas, and less than 3 percent in Louisiana, Mississippi and Alabama, according to Highline Data, part of National Underwriter's parent company Summit Business Media Co.

States that could be impacted by Gustav have a total of $29 billion in direct premium written exposure from federal flood, homeowners and auto coverage, Highline Data reported.

Special Reports /

Storms Gustav, Hanna Threaten U.S. Coasts

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