Insurers have increased their estimates of the cost of the three hurricanes that struck Louisiana by 25 percent since the end of last year, according to Louisiana Insurance Commissioner Jim Donelon.
Policyholders have now filed 311,266 claims of all types from the three storms through the first quarter of this year.
Of those, 192,045 claims, or 62%, were closed with payment as of March 31, garnering $6.9 billion in payments for damage caused by the three hurricanes.
Last year the Louisiana Department of Insurance (LDI) issued a “data call” requiring all authorised property and casualty insurers, including surplus lines insurers, to submit their claims data on hurricanes Laura, Delta and Zeta in Louisiana at regular intervals until October 2021.
The 2020 storm season was the most active ever in Louisiana, with three hurricanes plus tropical storms Cristobal and Marco striking the state, as well as being the second most expensive for Louisiana behind the 2005 storm season. Hurricane Laura has now displaced Hurricane Rita in 2005 as the second most costly storm in Louisiana history.
As of March 31st, insurers had closed 83% of the claims from Hurricane Laura, 65% of which were closed with payment. Total paid losses plus reserves on reported claims from all surveyed lines of insurance for Hurricane Laura at the end of March were $8.3 billion, accounting for the vast majority of damage from the record 2020 hurricane season in Louisiana.
Policyholders have filed 85,834 claims from Hurricane Delta, which made landfall in Southwest Louisiana on October 9 as a Category 2 storm.
By the end of March, insurers had closed 89% of all Delta claims, and 60% of those claims were closed with payment, having paid or reserved $752.8 million to cover losses from reported claims from all surveyed lines of insurance for Hurricane Delta as of March 31st.
Donelon said: “This data underscores just how devastating the 2020 storm season was in Louisiana. The increase in the reserves backs up what I’ve been counselling policyholders about their claims – it isn’t a one-shot deal.
“If you find additional damage or increased costs after your original claim, you can file supplemental claims until your repairs are complete, as there is no release applicable to first party claims except under unique circumstances.”
