Insured damage for the fourth in Florida's storm series turns out to be about half what experts estimated.
By JEFF HARRINGTON
Published October 27, 2004
Hurricane Jeanne, the last of Florida's quartet of summer hurricanes, was not as costly as initially feared.
U.S. property insurers are expected to pay homeowners and businesses an estimated $3.245-billion for insured property losses from Jeanne, according to a delayed preliminary estimate released by the insurance industry Tuesday.
That's enough to put Jeanne in the top 10 list of most expensive U.S. hurricanes, but it's far shy of the $5-billion to $7-billion range predicted shortly after the storm.
"If there is any such thing as good news with (the hurricanes), I suppose this is good news," said Bob Hartwig, chief economist with the Insurance Information Institute.
Combined with payouts from hurricanes Charley, Frances and Ivan, the insurance industry totaled hurricane losses of $20.4-billion this year, roughly the same amount as damage caused by 1992's Hurricane Andrew when adjusted to today's dollars.
None of those figures include flood damage, which is covered under a national program, or uninsured losses.
ISO's Property Claim Services, which analyzes catastrophe damage for the insurance industry, was at a loss to explain why its estimate fell so far below modelers' predictions.
The modelers base their estimate on a hurricane's wind strength and property values along its path; Property Claim Services uses claims filed.
Hartwig speculated on several reasons damage may have been less than expected: There were fewer trees to fall on homes after Hurricane Frances swept through on a similar path; Jeanne's slightly different track may have spared some expensive properties; and residents were better prepared.
"Given this was a second storm to come through a similar track, maybe people took it seriously and actually boarded up windows to prevent further damage," he said.
Hurricane Jeanne struck Florida on Sept. 25 and continued northwestward across nine other states.
Jeanne produced nearly 385,000 claims for destroyed or damaged homes, cars, boats and businesses. Florida accounted for $2.785-billion of the loss and 297,000 claims, or more than three-quarters of claims filed.
ISO spokesman Dave Dasgupta said his company will survey insurers again in 60 days to update the number of claims.
Typically, Property Claim Services releases its estimate within two weeks after a hurricane or other natural disaster. But Florida's barrage of four hurricanes in six weeks left it scrambling.
Insurers took longer than expected to inspect damaged properties, many of them in the same areas hit shortly before by Frances and Charley.
