(Bloomberg) -- Hurricane Francine — which made landfall in Louisiana on Sept. 11 with Category 2 winds — is expected to cost insurers close to $1.5 billion, according to an early estimate from catastrophe modeling firm Karen Clark & Company.
Winds reaching 100 miles per hour triggered a power failure that affected more than 400,000 homes and businesses and canceled hundreds of flights across the US South. Francine quickly weakened to a tropical storm as it moved into Mississippi.
While tropical storm weather hit New Orleans, the city was spared from the strongest winds — helping to contain overall losses, according to KC&C.
The KC&C estimate includes privately insured damage to automobiles, residential, commercial, and industrial properties, as well as business interruption. It doesn’t take into account harm to boats, offshore properties and losses covered by the National Flood Insurance Program.
State Farm and Allstate Corp. are the two main providers of homeowner insurance policies in Louisiana, with local market shares of 22% and 14% respectively.
Francine is the third hurricane to hit US shores this year, and the sixth to make landfall in Louisiana in the past five years.
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