Isaac claims have left the last resort insurer in pretty good shape.
Though Hurricane Isaac certainly left its mark and was considered to be a “fairly significant event” for the homeowners insurance of last resort, Louisiana Citizens Property Insurance Corp., the insurer was still able to cover the claims that came in and had the resources that it needed ready and waiting.
This insurance news was released by Richard Robertson, the insurer’s chief executive.
Citizens is the homeowners insurance company that sells its policies to people within the state who aren’t able to obtain their protection through the private market. Following Hurricane Isaac, there have been nearly 3,000 claims, and it is expected that there will still be more as the last people continue to return from their evacuations.
Still, the homeowners insurance company feels that it will be left in good shape.
According to Robertson, “I think it’s going to be a fairly significant event, but the reality is, it’s way too early to assess the impact.”
Citizens is among the largest insurers in Louisiana, and provides homeowners insurance coverage through approximately 115,000 policies at the moment. It currently provides coverage to many property owners in coastal parishes and those residing below the Intracoastal Waterway, where it is impossible to purchase policies from private insurers.
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Though the damage that Hurricane Isaac caused was quite significant, with some estimates placing losses somewhere between $500 million and $2 billion, it doesn’t look like this will be the size of the catastrophe that it would take to cause notable harm to the insurer.
Among the reasons for this is that the majority of the damage that was caused is the result of flooding. Damage that results from flooding that comes from rising water levels (as opposed to a broken water pipe) is not included in homeowners insurance coverage. Instead, its protection comes from the National Flood Insurance Program backed separate policies.
According to the Federal Emergency Management Agency, it has not yet produced any estimates regarding the size or quantity of the claims that it will be receiving from the hurricane’s damage that falls outside of homeowners insurance coverage.