The Insurance Services Office (ISO) estimates insurers will pay homeowners and businesses $360 million for insured-property losses from the winter storm in December that blanketed North Carolina and four other states with snow and ice.

So far, insured losses in the quarter stand at $1.3 billion, making it the third costliest fourth quarter since 1992. The costliest fourth quarter was in 1995, when insured damage totaled $2.63 billion — primarily because of Hurricane Opal, which alone cost $2.1 billion.

Insured losses are greatest in North Carolina at $230 million, followed by South Carolina at $60 million, New York at $40 million, Pennsylvania at $20 million and Virginia at $10 million. ISO anticipates insurers will receive more than 155,000 claims from residential and commercial policyholders.

North Carolina Insurance Commissioner Jim Long has advice for any insurance customer, who has sustained losses because of the winter weather.

No. 1: Contact your insurance company or agent and double check your policy coverage.

"Most homeowners policies will cover the kinds of damage seen with this storm," Long said. "Contact your insurance agent as soon as you recognize the damage."

No. 2: Keep receipts for any work done or materials purchased.

Long says these will be needed when making your insurance claim.

No. 3: Wait to schedule permanent repairs until after reaching an agreement with your insurance company on the costs.

No. 4: Exercise extreme caution when dealing with repairs and clean up.

Be careful with power tools such as chainsaws, and use proper safety equipment such as safety glasses or helmets. Keep young children and other family members out of harm's way - be mindful of downed power lines, weakened trees and limbs that could fall, slippery areas and frozen ponds and lakes. "Preventing injuries makes the recovery process go smoother, of course, but it also helps keep insurance costs down for everyone," Long added. "Make the safety of yourself and your loved ones the top priority."

The recent storms in Virginia prompted that state’s insurance commissioner, Alfred Gross, to remind his residents about the importance of making sure they have adequate insurance coverage.  Gross noted some residents of his state only realized they were underinsured, after their homes sustained damage in the recent storms. “Consumers can take steps to get smart about their insurance coverage, and the time to start is now,” Gross said.

Reversing trend

The latest figures follow a second quarter, which saw a decline in the payments made for catastrophic losses.

ISO estimates catastrophes in the second quarter of 2002 will cost insurers $1.97 billion in insured-property losses, compared to last year's second-quarter figure of $6 billion.  Tropical storm Allison is blamed for much of the 2001 loss.

Texas has the largest amount of insured damage, estimated at $455 million. Illinois is second in damage with an estimated $205 million, and Maryland is third with $170 million.

Aside from the late-June wildfire in Arizona, all of the events in the second quarter were the result of wind; hail, tornadoes, and flooding that accompany strong thunderstorms. A severe weather system between April 27 and May 3 was the largest catastrophe of the quarter and the cause of about half of the total loss for the period. The seven-day period generated nearly 250,000 claims and estimated losses of $855 million.

The 10 catastrophes produced about 550,000 claims for the quarter, according to ISO. The second quarter is usually active, with an average of 12 catastrophes over the past 10 years.