Hurricane Katrina Could Wind Up As Biggest Insured Loss Ever

Hurricane Katrina could end up being the worst catastrophe ever covered by the property-casualty insurance industry, with losses perhaps topping the $20.3 billion posted by Hurricane Andrew in 1992 and the $19.5 billion suffered in the Sept. 11, 2001 terrorist attacks, industry officials warn.

There is no doubt insures will play a huge role in the massive recovery effort although the final tally for insured losses remains very much up in the air. For one thing, rescue workers had trouble reaching many of the stricken areas, let alone insurance adjusters. For another, questions remain about how much of the damage was caused by flooding, rather than wind, and is thus not insured by private carriers.

Source: NU, September 5, 2005