NU Online News Service, Sept. 26, 11:35 a.m.EDT

State Farm says it has paid policyholders $5 billion so far dueto weather-related catastrophes, and the Bloomington, Ill.-basedinsurer says 2011 is “likely to be one of the company's busiestyears on record for catastrophe losses.”

The company notes that a “summer of wildfires, tropical stormsand hurricanes followed a spring of relentless tornadoes and hailstorms,” adding that State Farm agents and claims representativeshave assisted policyholders on more than 970,000 catastrophe claimsthis year through Sept. 23.

“The unrelenting, widespread volatile weather continues to causeproblems for our policyholders. Our claim teams have risen to thechallenge and we are prepared with the necessary resources torespond. About 4,300 specifically dedicated catastrophe claimrepresentatives have joined thousands of local claim professionalsand agents at catastrophe sites across the country,” says BrianBoyden, State Farm executive vice president, in a statement.

To put the figure in perspective, State Farm Spokesman DickLuedke says Hurricane Katrina in 2005 cost the company $3.9 billionin indemnity payments, “so this is greater than that.” He notesthat although Katrina was one storm while payments so far this yearcover several events, Katriana was the costliest storm ever for thecompany.

State Farm says it has reported declared catastrophes this yearin Alabama, Arizona, Arkansas, California, Colorado, Connecticut,Delaware, District of Columbia, Florida, Georgia, Illinois,Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland,Massachusetts, Michigan, Minnesota, Mississippi, Missouri,Nebraska, New Hampshire, New Jersey, New Mexico, New York, NorthCarolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, SouthCarolina, South Dakota, Tennessee, Texas, Vermont, Virginia, WestVirginia, Wisconsin and Wyoming.