Parker Waichman LLP

Hurricane Gustav Claims Estimated to be as High as $10 Billion

Hurricane Gustav insurance claims could reach $10 billion, not as high as was first predicted when the then-Category 3 storm was churning in the Gulf of Mexico. Fortunately fears that Gustav would be a repeat of Hurricane Katrina – which cost insurers $41 billion – were not realized. Hurricane Gustav came ashore the Louisiana Gulf […]

Hurricane Gustav insurance claims could reach $10 billion, not as high as was first predicted when the then-Category 3 storm was churning in the Gulf of Mexico. Fortunately fears that Gustav would be a repeat of Hurricane Katrina – which cost insurers $41 billion – were not realized.

Hurricane Gustav came ashore the Louisiana Gulf Coast on Monday. Forecasters had feared that Gustav could come ashore as a catastrophic Category 4 storm, but the storm weakened to a Category 2 storm by the time it reached land. Damage from the storm’s winds and storm surge spanned from the Gulf Coast of Mississippi to Texas. Even after it weakened to a tropical storm, heavy rains and possible tornadoes spawned by Gustav’s heavy were expected to cause additional damage.

Unlike Katrina, levees in New Orleans and some surrounding communities held – although in some case just barely – sparing the area the catastrophic flooding that was seen in 2005.

By Tuesday, insurance companies had already deployed their adjusters to the Gulf Coast. According to Calif.-based Risk Management Solutions Inc., early estimates put losses on land at between $3 billion to $7 billion and oil-drilling damage at about $1 billion to $3 billion. According to Forbes.com, other reported estimates placed insured losses on land ranging from $6 billion to $10 billion, primarily in Louisiana.

However, the Forbes article said that those numbers might not be accurate since computerized data on insurance losses may understate actual costs because they don’t include damage to uninsured property or destruction caused by actions excluded from some policies, such as flooding.

So far however, flooding does not appear to be a major contributor to damages in the hurricane zone. Matt Bordonaro, spokesman for The Travelers Group, told Forbes that “We are seeing more of a wind event, than a flood event.”

Hopefully, victims of Hurricane Gustav will have an easier time with their insurance claims than was experienced following Katrina. Faced with staggering losses, insurers used many tactics to avoid paying Katrina damage claims. The fact that so much flooding occurred during Katrina aided the companies in their efforts. One of the major tactics that insurance companies used in Katrina was to find that property damage was caused by flooding, and not by wind. Conventional property insurance does not cover flood damage.

There is some evidence that some insurers acted fraudulently when finding that Katrina damage was caused by flooding. According to a 2007 investigation by Bloomberg.com, one engineer who examined damaged Gulf Coast homes for insurers alleged that some of his reports were altered by the companies to say that homes were damaged by flood, and not by wind. Such tactics led more than 1000 Katrina homeowners to sue their insurance companies over claims, the largest number of lawsuits ever to follow a natural disaster in the US.

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Positive: Professionalism , Quality , Responsiveness
Thomas Carbone
2 years ago
5 Star Reviews 150
The law firm worked with me on a victim compensation fund. Christina Morace was the paralegal and through the long process she called me to keep me up to date. She let me know what paperwork was coming and what it meant. She also called to explain the time table for each part. I did not have to wonder about what was happening. I really appreciate her work and the others at Parker Waichman.
Shauna N
2 years ago
5 Star Reviews 150
First off I have to say thank you to Linda Luckman and Brett Zekowski. Extra kudos to Linda, thank you for your patience, I know I called you so many times, and you were pleasant all the time , answered my questions, and called me back EVERYTIME , you said you would, or if I left a message for you..Parker Waichman, KEEP HER, she's truly an asset to the company. I couldn't wait to meet that lovely lady, was one of the people I had to see.and what a lovely lady indeed...Anyway, let me get on with the review...I am very happy to have Parker Watchman represent me as this company is an excellent company who kept me informed along the way, receptionists answering the phones friendly, and I truly felt the company was doing what was best for me..thank you guys, great job!! If you need a lawyer, I highly recommend Parker Waichman!!
Joseph Monroe
5 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038