Call it Hurricane Irene or call it Tropical Storm Irene. By any name, it was a Catastrophe.
Estimates of Insured Losses were greater than actual Claims after Irene passed through, as of August 29, 2011 anyway. Stocks of Insurance Companies led a rise in share prices of shares traded on the New York Stock Exchange as a result. E.g., Noah Buhayar, "Irene's Estimated U.S. Insurer Cost Drops to $2.6 Billion; Hartford Climbs" (Bloomberg.com, Monday, August 29, 2011); Associated Press copyrighted report, "Insurers Drive Stocks Higher After Weak Irene" (Published Online by the Los Angeles Times, Monday, August 29, 2011).
However, in addition to Property Damage Claims, more "exotic" kinds of Claims not widely known to the public or the press, almost certainly are yet to be made. They include "ALE" or "Additional Living Expense," cf. Noah Buhayar - Bloomberg, supra (not using the term, but pointing out that Insured Losses "may include hotel and living expenses for policyholders"), and Business Interruption Claims. See, e.g., id.; Mary Williams Walsh, "Irene Adds to Bad Year for Insurers" p. B1, col. 6 (New York Times Nat'l ed., "Business Day" Section, Monday, August 29, 2011).
Irene is clearly a Catastrophe. The Insurance Information Institute reportedly estimates $7 Billion or $7,000,000,000.00 in losses, placing Irene among the "Top Ten" CATClaims in U.S. history. Mary Williams Walsh - New York Times, supra.
Likely results will include less Property Insurance Coverage available to people and businesses located on the Coasts. See, e.g., Noah Buhayar - Bloomberg, supra; Mary Williams Walsh - New York Times, supra.
Without endorsing any answers in advance, you and your clients may wish to access "Bucks" blog on the New York Times Website if you have Insurance questions as a result of Hurricane Irene, or for steps you and your clients might take before the next Catastrophe, you might consider scouring the Boston Globe Online for Mark Jewell, Associated Press Copyrighted report, "Insurance Tips to Keep in Mind as Irene Closes In" (Published at Boston Globe Online, Saturday, August 27, 2011).
The 22nd Annual Bad Faith Litigation Conference of the American Conference Institute is being held in 2011 in Orlando, Florida. The author will be speaking. As a result, the ACI will offer you a large discount if you choose to register for the Conference. In order to register and receive this discount from the ACI, contact Amanda Waltmon, Esquire, Legal Analyst and Program Director at the ACI and the deadline most recently announced by the ACI for requesting this discount is August 31, 2011. Ms. Waltmon's direct dial is 212.352.3220, ext. 5231 or send Ms. Waltmon an EMail at [email protected]. Here is a link to the American Conference Institute Website Page which features this Conference including registration, if you or someone you know would like to attend.
Please Read The Disclaimer.
Comments