Record $27.3 Billion in Claims Paid Out in 2004

U.S. property and casualty insurers paid out a record $27.3 billion to cover the losses homeowners and businesses sustained in hurricanes and other catastrophic events in 2004, according to a company that tracks insurance data.

The Insurance Services Office said the total surpassed the previous high of $26.5 billion in paid claims in 2001, which included the Sept. 11 terrorist attacks.

ISO’s property claim services unit recorded 22 catastrophic events last year. The company defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a large number of policyholders and insurers.

The ISO said policyholders in 42 states and Puerto Rico filed nearly 3.35 million personal property, commercial property and auto claims from storms.