JERSEY CITY, N.J., Sept. 23, 2004 — Homeowners and businesses are expected to file claims totaling an estimated $4.4 billion for insured property losses from Hurricane Frances, according to a preliminary estimate by ISO's Property Claim Services (PCS) unit.
Hurricane Frances made landfall between West Palm Beach and Vero Beach in Florida on Sept. 3 but weakened into a tropical storm when it reached the Florida Panhandle. Frances then moved north, triggering numerous tornadoes and heavy rain in Georgia, South Carolina, North Carolina and New York, causing 30 deaths along the way.
Florida accounted for $4.1 billion in insured property losses and more than 500,000 claims. U.S. property/casualty insurers are expected to process more than 552,000 claims for insured losses to personal and commercial property and vehicles.
PCS will resurvey insurers in 60 days as more claims may be filed and information on existing claims may change. A revised estimate will be issued if necessary. PCS resurveys all catastrophes exceeding $250 million or whenever specific circumstances relating to a catastrophe require additional analysis.
ISO's PCS unit defines a catastrophe as an event 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 loss on an industrywide basis arising from catastrophes, reflecting the total insurance payment for personal and commercial property lines of insurance covering real property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss-adjustment expenses.
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