The Insurance Services Office said Hawaii's recent earthquake does not qualify as an insurance catastrophe because few Hawaii homeowners have earthquake coverage and the number of commercial claims is small.
Gary Kerney, assistant vice president for Jersey City, N.J.-based ISO's Property Claim Services unit, said in an e-mail that the organization has been following up with insurers regarding the Oct. 15 earthquake.
He said personal lines carriers reported receiving a few hundred losses, but many policies do not have earthquake coverage and claims will likely be denied.
PCS defines a catastrophe as an event of at least $25 million in insured property loss involving a significant number of insurers and policyholders.
Commercial carriers reported a handful of larger losses to hotels and other commercial buildings, but the number of claims is small.
“Therefore, we have not declared a catastrophe for the earthquake,” he said. “The number of claims and the insured property damage does not warrant a designation.”
The United States Geological Survey said the 6.7 magnitude quake struck the area at 7:07 a.m. local time on Sunday, causing power outages and widespread damage. The quake was centered 65 miles west of Hilo, on the island of Hawaii, popularly called the Big Island.
Reports indicate the most extensive damage was to schools, homes and infrastructure on the big island, but facilities were quickly reopened for business.
Local officials on the island of Hawaii have put damage estimates at $100 million and climbing. There was no loss of life from the quake, but a number of minor injuries.
See the Oct. 30 edition of National Underwriter for additional details.
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