The insurance industry's estimate of $6-billion makes it the third-worst hurricane to hit the United States, and other factors could double that figure.
By JEFF HARRINGTON
Published October 15, 2004
Insured damage from Hurricane Ivan will total $6-billion, on the top range of early estimates and more than many economists had predicted, according to an industry report Thursday.
That would elevate Ivan to rank as the third most expensive hurricane in U.S. history behind Hurricane Andrew in 1992 and Hurricane Charley, which struck just four weeks before Ivan slammed into the Panhandle and eastern Alabama last month.
ISO's Property Claim Services, which analyzes catastrophe damage for the insurance industry, said its $6-billion figure for Ivan does not include federally handled flood losses, storm surge and uninsured damage. Economists said those factors could double the total.
Florida accounted for the lion's share of losses at $3.8-billion. It was followed by Alabama at $1.2-billion, Georgia at $350-million, Pennsylvania at $225-million and North Carolina at $135-million.
The Insurance Information Institute had projected losses from Ivan at $4-billion to $5-billion while a modeling firm used by ISO had estimated $4-billion to $6-billion.
"There were more claims and they were more severe than many analysts had originally expected them to be," ISO spokesman Christopher Guidette said.
Flood and storm surge losses from the storm are expected to be high. The Florida Insurance Council pointed out that Ivan produced a 20-foot storm surge, causing widespread destruction along Navarre Beach, Pensacola Beach and Perdido Key in west Florida. The National Flood Insurance Program has not released an estimate on flood damage.
ISO said insurers are expected to pay $6.8-billion for Hurricane Charley and $4.4-billion for Hurricane Frances, the second storm of the season. An estimate on the fourth storm, Hurricane Jeanne, should be ready within two weeks, Guidette said. Insurance modeling firms have placed Jeanne losses at $5-billion to $7-billion.
The Insurance Information Institute is estimating insured losses from the four storms at more than $22-billion and is projecting more than 2.2-million claims. The 2004 hurricane season ranks as the second-largest event in terms of insured losses in U.S. history, behind the 9/11 attacks, with insured losses of $32-billion.
