Jewelery insurer says Katrina looting costs $700,000

Looting in New Orleans in the wake of Hurricane Katrina has cost Jewelers Mutual Insurance Co. nearly $700,000 in claims, the company’s chief operating officer has told A.M. Best’s news service.Jewelers Mutual is based in the U.S. and also operates in Alberta, P.E.I., Saskatchewan, the Northwest Territories and the Yukon. It is the only insurance company in the United States to offer coverage specifically for the jewelery industry. Jewelers Mutual has 450 policyholders in Mississippi, Louisiana, Alabama, and Florida, which was devastated by winds and flooding after Hurricane Katrina hit in late August.The insurer noted looting damage is extensive because of the length of time areas have been inaccessible after the storm due to the severity of the damage and imposed civil restrictions. “The looting was quite substantial because of the length of time in which the bad guys could get in there,” Darin Kath, the company’s chief operating officer, is quoted as saying to the news service BestWire.As of Sept. 13, the insurer’s adjusters were granted special permits to enter sections of New Orleans.On its Web site, Jewelers Mutual notes it has extended the time period for renewing policies that expired after August 26 and paying premium to October 31.Also, the company is trying to help commercial jewelers re-locate their customers’ items to more secure locations. For example, it is not charging any additional premiums for providing coverage to commercial policyholders that transport their merchandise to safer locations. Similarly, it is offering coverage for merchandise stored at a secure, temporary location at no additional premium. The company said it isn’t requiring policyholders to move their merchandise.