Louisiana Citizens Property Insurance Corp. says it has settled 85 percent of the more than 17,000 claims it received from Hurricane Isaac, the fastest it has settled so many claims after a significant loss event in its history, the insurer says.

The state's insurer of last resort says it received 17,059 claims from Hurricane Isaac and 97 percent of those claims have been inspected.

Loss payments through the second week of October totaled $57.8 million, Citizens says. It expects the ultimate loss and adjustment expense from Isaac to reach $75 million to $100 million.

Citizens says that it will be able to manage the storm's financial impact through current cash reserves and reinsurance that covers the losses in excess of $75 million.

Citizens says that its “quick response was due to enhanced capabilities instituted by the company.”

“Since hurricanes Katrina and Gustav, we have significantly enhanced our catastrophe claims adjusting capabilities,” says Quin Netzel, chief claims officer for Louisiana Citizens in a statement. “As a result, we have been able to respond to claims from Hurricane Isaac faster than at any time in our history.”

Louisiana Citizens says it utilized a network of more than 400 adjusters. Claims have generally been inspected within seven days of the report date and closed within 25 days, the carrier says.

“Adjusters are working 7 a.m. to 7 p.m. for seven days a week to handle all the claims,” says Netzel.

The most common claim was for wind damage to exterior roofing and corresponding interior water leakage. The carrier says that 40 percent of the claims have been closed because the damage was less than the special two percent or five percent hurricane deductibles.

Hurricane Isaac struck on Aug. 28 as a Category 1 storm causing flooding and power outages around New Orleans, but unlike Hurricane Katrina, did not cause the widespread flooding in the city.

In comparison to Katrina, Isaac's losses were expected to be minor as modelers put the figure at no more than $2 billion.

Special Reports /

Louisiana Citizens Says 85% of Isaac Claims Settled

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