Damage from Hurricane Emily, which struck South Texas Wednesday, will be less than $1 billion insured loss, according to an estimate released today.
Meanwhile, a Florida regulator ordered insurers not to cut coverage for homes damaged July 10 by Hurricane Dennis as claims numbers from that storm began to trickle in.
The Emily estimate was released by Oakland, Calif.-based Eqecat. David F. Smith, director of Eqecat's Research Group, said the estimates cover a wide range, with the damage to Mexico's Yucatan Peninsula, where Emily hit Monday with sustained winds of 125 mph, at between $100 million and $600 million. For the Gulf Coast, damage estimates range from $50-to-$350 million.
He explained that the broad range of the estimate results from a combination of limited insurance data on the buildings along Mexico's coast and the limited impact area of the storm. He said Eqecat will be working to gain more data to build better modeling estimates on Mexican property in the future.
In Florida, Insurance Commissioner Kevin McCarthy issued an emergency order banning insurers from canceling coverage for homeowners whose dwellings have been damaged by Hurricane Dennis.
The order issued Tuesday includes commercial residential property and covers 11 storm-affected counties.
Under its provisions, properties damaged by Hurricane Dennis winds cannot have their insurance cancelled or non-renewed until 90 days after repairs are completed.
The order noted estimates that Hurricane Dennis damages will be between $1.2 billion and $5.5 billion, and that as a result of the 2004 hurricane season "there continues to be a lack of availability of contractors to expeditiously repair damaged properties."
It stated that issuance of the order is "fair under the circumstances" due to the fact that a state of emergency has been declared by Gov. Jeb Bush.
One insurer, State Farm, said today that it has received 5,100 homeowners claims, 1,500 auto claims and 224 flood claims from Dennis in Florida alone.
A company spokesman said State Farm has received 2,074 homeowners claims in Alabama and Mississippi, and 1,912 homeowners claims in Georgia and South Carolina.
He said that in the four states of Alabama, Mississippi, Georgia and Alabama, there have been 272 auto claims and 69 flood claims. He noted that most of those claims were in Georgia and Alabama.
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