Insurers to pay an estimated $6.8 billion on claims from Hurricane Charley, says ISO's Property Claim Services unit

US property/casualty insurers are expected to pay homeowners and businesses an estimated $6.8 billion for insured property losses from Hurricane Charley, according to preliminary estimates by ISO’s Property Claim Services® (PCS®) unit.

Hurricane Charley, a Category 4 hurricane, smashed through southwest and central Florida on August 13, leaving a swath of destruction in its wake with winds reaching up to 145 miles an hour. Insured property losses in Florida stand at $6.755 billion.

Hurricane Charley lost its punch by the time it reached the coastal areas of North Carolina and South Carolina on August 14, which suffered insured losses of $25 million and $20 million, respectively.

Charley is the second costliest hurricane after Hurricane Andrew, which hit south Florida in 1992, causing insured losses of $20.3 billion in inflation-adjusted dollars.

Florida accounts for 605,000 of the nearly 622,000 Hurricane Charley claims that insurers expect to receive from homeowners and businesses for insured losses to personal and commercial property and vehicles. 

PCS will resurvey insurers in 60 days as more claims are filed and existing claims are amended. It will revise its estimate 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 industry-wide basis arising from catastrophes, reflecting the total net 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.

About ISO:
Insurance Services Office (ISO) Ltd is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, estate agency, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. Around the world, ISO's services help customers protect people, property and financial assets.  ISO's customers in the UK include Admiral Group, AXA Insurance, Chaucer Insurance, Highway Insurance, Lloyd's, Rubicon Corporation and Zurich Financial Services.

For more information please contact:
Dave Dasgupta, ISO
Tel: +1-201- 469-2426
DDasgupta@iso.com

Manuela Whittaker, IBA – PR for ISO
Tel: +44(0)1780-721-433
mwhittaker@iba-europe.com