ISO pegs Charley loss at US$6.8 billion

The total insured loss from Hurricane Charley should be around US$6.8 billion, says the U.S. Insurance Services Office (ISO). ISO’s Property Claim Services unit says the category 4 hurricane, which hit Florida on August 13, will cause US$6.755 billion in insured losses in that state. Losses from Charley’s touchdown in North and South Carolina on August 14 will be around US$45 million.ISO is expecting 622,000 claims from homeowners, vehicle owners or businesses affected by the storm, of which 605,000 will come from Florida. ISO’s estimate is slightly below the US$7.4 billion in insured losses anticipated by the Insurance Information Institute (III). The Institute for Business and Home Safety (IBHS) is weighing in on the storm’s aftermath, stressing how the storm provides real-life evidence of the importance of stricter business codes introduced in the state in 2002.The Florida government has voted to enact new standards as of 2005 which the IBHS call “insufficient for providing most homes in these areas with the kind of protection against high winds that Hurricane Charley demonstrated they need”.