Allison to Cost Insurers $ 1.2 Billion

U.S. P/C insurers will pay homeowners and businesses $1.2 billion for insured property damage wreaked by Tropical Storm Allison during the first two weeks in June, according to preliminary estimates by Insurance Services Office Inc., Property Claim Services unit. Of the total, Texas sustained $1 billion of the insured property damage, most of that in the Houston area. Pennsylvania was the second hardest hit with $120 million in damages. State and local officials estimate total damages in Houston caused by Tropical Storm Allison at more than $5 billion following ongoing assessments of losses and repairs. The Houston Chronicle reports that some 2,000 homes in Harris County with flood damage exceeding 50 percent of their value may be “red tagged” and eligible for a voluntary buyout by the county. An estimate 15,700 homes suffered flood damage. Officials of property restoration company BELFOR describe Houston flood damage as the most extensive ever encountered in a clean-up effort. Working with some 500 employees on more than 60 projects in all parts of Houston, BELFOR, which specializes in large-loss commercial damages, has assembled its largest catastrophe crew ever. BELFOR assisted after hurricanes Andrew and George, the North Ridge earthquake and the Midwest flood Tropical Storm Allison dumped 36 inches of rain on the area causing widespread damage in the downtown area. Port of Houston Authority damages were pegged at $2.4 million, much of which will not be covered by insurance, reports the Chronicle. Restoring the depth of the Houston Ship Channel near the port’s docks will account for most of the cost. The port expects to spend an estimated $1.8 million dredging the channel.

Topics Carriers Flood