JERSEY CITY, N.J., July 26, 2005 — Property/casualty insurers are expected to pay policyholders in four states $900 million on claims for insured property losses from Hurricane Dennis, according to estimates by ISO's Property Claim Services (PCS) unit.
Dennis caused much less damage than each of last year's "fab four" hurricanes but nearly matched this year's second-quarter catastrophe loss of $920 million.
Dennis made landfall as a Category 3 hurricane just west of Pensacola, Fla., and then moved further inland to Alabama, Georgia and Mississippi.
Florida suffered $640 million in losses to residential and commercial property and auto, followed by Alabama ($115 million), Georgia ($85 million) and Mississippi ($60 million).
PCS estimates the event will generate slightly more than 126,000 claims from homeowners and businesses.
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 fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.
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