BLOOMINGTON - State Farm Insurance Cos. has disaster teams in stand-by mode, ready to move into hurricane-affected areas and process claims. | Insurers estimate claims as high as $10 billion | Local Red Cross sends more help
Even as catastrophe vehicles were parked in Jackson, Miss., waiting for the OK from authorities to enter the cities, State Farm had received 2,505 home claims from areas in Alabama, Mississippi and Louisiana that were affected by Hurricane Gustav, which hit the Gulf Coast on Monday, said spokesman Jeff McCollum.
Teams were to head to Gulfport, Miss., and McComb, Miss., among other locations in that state. Claim centers also might be set up in the Louisiana communities of Houma, Elmwood, Lafayette, Lake Charles and Baton Rouge, McCollum said. Mobile, Ala., likely will have a site, too, he said.
It was unclear if vehicles would have been able to move out by early today.
After Hurricane Katrina hit the Gulf Coast three years ago, State Farm underwent a public relations storm of its own, including litigation matters and criticisms for how it handled claims. State Farm maintains that the company is proud of the way it handled the disaster of such proportions, McCollum said.
Nonetheless, improved technology since Hurricane Katrina also might help smooth the claims process a little more this time around, McCollum said. The company is the largest home and auto insurer in the Gulf Coast region.
State Farm has 33 satellites that connect back to the company's home office system and hand-held global positioning system devices that will help people work faster and more efficiently in areas that may be covered in debris and missing street signs, McCollum said.
And before initial damage is even known near Louisiana, the Bloomington-based insurer also is keeping an eye on Tropical Storm Hanna, which reached hurricane status earlier and is expected to regain that strength this week and could hit Florida and South Carolina.
"They're watching it like crazy," McCollum said. "They're making their calls. They're getting people lined up."
That means more catastrophe vehicles could leave from Bloomington to head in that storm's direction, McCollum said. State Farm has 12 mobile office facilities, seven of which were deployed for Hurricane Gustav.
That storm was forecasted to be devastating to the Gulf Coast and New Orleans, which were slammed hard just three years ago by Hurricane Katrina. But initial weather reports show the southern communities were sparred from as much damage, though it's too early for State Farm to know the real impact of the storm, McCollum said.
"We won't know for sure until we actually get in these areas. … Initially, it doesn't look like it's going to be as destructive as Katrina," he said.
As a result of 2005 hurricanes Katrina, Rita and Wilma, State Farm had 295,000 homeowner claims and 99,000 auto claims for a total payout of $3.6 billion.
Posted in Business on Wednesday, September 3, 2008 12:00 am Updated: 11:46 am.
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