$335 Million Lili Damage Estimate
NU Online News Service, Oct. 17, 11:39 a.m. EST?Insurers are expected to pay $335 million to homeowners and businesses for insured-property losses from Hurricane Lili, which struck Louisiana and Mississippi on Oct. 3, according to estimates by the Property Claim Services unit of the Insurance Services Office Inc.
Lili, initially billed as a Category 4 hurricane, was downgraded to a Category 2 storm with wind speeds near 100 miles-per-hour when it made landfall near New Iberia in Southern Louisiana. Heavy rain exacerbated flood conditions that persisted following Tropical Storm Isidore, which had struck Louisiana the previous week.
Many homes and businesses sustained damage from fallen trees, flying debris and streaming rain driven by gale-force winds.
Homeowners and businesses in Louisiana and Mississippi are expected to file more than 116,000 claims, Jersey City, N.J.-based ISO said.
Louisiana accounted for $320 million in damages from 112,700 claims to personal and commercial property, as well as automobiles. Personal property claims constituted the vast majority–more than 80 percent, or nearly 95,000 claims–of the 116,000 claims anticipated by insurers.
The PCS unit of ISO defines a catastrophe as an event within a particular territory that causes $25 million or more in insured property losses and affects a significant number of property-casualty policyholders and insurers.
PCS estimates represent anticipated insured losses on an industrywide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, and business-interruption losses. The estimates exclude loss-adjustment expenses.
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