Mr. McCarley said that Katrina caused more extensive damage to some areas of Alabama than storms in the past. He pointed out that one landmark hotel, The Grand Hotel Marriott Resort, a 150 year-old landmark, in Point Clear, Ala., along the coast of Mobile Bay, had withstood many hurricanes but was damaged by Katrina.

A press release by the Marriott Corporation said the hotel is temporarily closed, along with 14 hotels in the New Orleans vicinity.

"I knew this would be a bad season, but I never recalled anything this massive," said Mr. McCain, who has 30 years experience in the business.

One of the hardest hit areas was Dauphin Island, a barrier island 33 miles south of the city of Mobile and 130 miles east of New Orleans, according to a Web site promoting the vacation spot.

Before and after aerial photos on the U.S. Geological Survey Web site show a well developed vacation housing island now covered with sand from the storm surge. One report said about 100 homes have vanished, and other reports showed the West end of the island underwater.

Alabama insurance agents had their office doors open within 48 to 72 hours of the storm, and the claims process began. Fortunately, Mr. McCarley said, agents had heeded the call for data-backup and followed their own emergency management plans--so they were able to easily access data and get up-and-running.

However, like some of their counterparts in Louisiana and Mississippi, while helping customers, some were dealing with their own losses, either to home or auto.

"Fortunately, there was no loss of life to agents or staff," Mr. McCarley said.

Where they can, the agents in Alabama are reaching out to agents in Louisiana and Mississippi. Mr. McCain said PIA agents are helping some Mississippi agents who can not contact their carriers by forwarding claims to carriers. One agent, he noted, is taking in another agent's family made homeless by Katrina.

AIIA agents have helped financially, said Mr. McCarley and are fielding customer calls for their fellow agents.

Mr. McCain noted, however, that the worst is just beginning for many agents as more and more policyholders return and the subsequent claim volume grows.

"Customers need to be made whole again and the agents and companies need to follow through," he said. "But it will be a hard road to go down if there is no one there to back [the agents] up. It will be a heavy burden."