October 18, 2002 by Canadian Underwriter
The U.S. Insurance Services Office (ISO) is estimating insured damage from Hurricane Lili at US$335 million. The hurricane hit Louisiana and parts of Mississippi in early October.
Lili had swept the coast of Mexico as a category 4 hurricane, but was downgraded to category 2 when it lost power over the Gulf of Mexico. When it made landfall in Louisiana on October 3, its wind speeds were near 100 mph, and heavy rains combined with flood conditions created by Tropical Storm Isidore late in September. Downed trees, flying debris and rain streaming into homes and businesses did most of the damage.
The ISO expects more than 116,000 claims, with the vast majority coming from Louisiana where Lili is estimated to cost insurers US$320 million. The majority of claims are personal property damage, amounting to likely 90,000 claims total.
Lili exceeds the ISO definition of a catastrophe, which is an event causing more than US$25 million insured damage in a given area.