Despite making landfall as just a Category 2-strength storm,Hurricane Ike's wind and storm surge has caused massive destructionalong the Texas and Louisiana coasts, and the storm continues tocause claims to be filed as far away as the Midwest.

According to a report from Guy Carpenter, the center of Ike hitGalveston Island, Texas, at 7 a.m. local time last Saturday, Sept.13, with wind speeds of 110 mph. One of the storm's biggestpredicted threats had been its storm surge, which the NationalHurricane Center said could be more than 25 feet due to the largesize of the storm. However, according to a report from riskmodeling firm AIR Worldwide, the surge failed to reach that height,instead topping out at the 13-foot mark. That was still enough forit to overflow flood walls and barriers, though, causingsignificant flooding damage to Galveston.

“Waves have been crashing over the seawall, and flooding hasbeen reported across Galveston Island, including in the city'sdowntown,” said Dr. Peter Dailey, director of atmospheric scienceat AIR Worldwide, in a release. “Both the east and west ends ofGalveston Island are reported to be under water. AIR estimates thatthe total value of insured properties on Galveston Island alone isabout $12 billion, divided roughly equally between commercial andresidential construction.”

As many policyholders learned after Hurricane Katrina, floodingcaused by storm surges isn't usually covered by insurers. Thetypical policy wording for most insurers is similar to that foundin the exclusions section of Insurance Services Office's Homeowners3 Form, Section I:

“We do not insure for loss caused directly or indirectly by anyof the following. Such loss is excluded regardless of any othercause or event contributing concurrently or in any sequence to theloss. These exclusions apply whether or not the loss event resultsin widespread damage or affects a substantial area…. 3. WaterDamage. Water damage means: a. Flood, surface water, waves, tidalwater, overflow of a body of water or spray from any of these,whether or not driven by wind; b. Water or water-borne materialthat backs up through sewers or drains or that overflows or isdischarged from a sump, sump pump, or related equipment; or c.Water or water-borne material below the surface of the ground,including water which exerts pressure on or seeps or leaks througha building, sidewalk, driveway, foundation, swimming pool, or otherstructure; caused by or resulting from human or animal forces orany act of nature. Direct loss by fire, explosion, or theftresulting from water damage is covered.”

Despite the extensive flooding losses, it is evident that Ike'swinds will result in a high number of residential and commercialinsurance claims, keeping catastrophe adjusters busy for months tocome.

Guy Carpenter's summary report indicated that the day afterIke's landfall, much of the city of Houston remained without power,meaning some 2.4 million in the Houston area were stuck in thedark. This fact will also contribute to a high number of businessinterruption claims. Additionally, the report stated that highwinds had blown-out the windows of many high-rise commercialbuildings in Houston.

Ike also caused heavy rainfall and strong winds as it continuedthrough the midsection of the U.S. The states of Illinois, Indiana,Missouri, Ohio, Tennessee, Kentucky and Arkansas reported extensiveflood damage and power outages, spawned from the heavy rains andwinds, and several people across these states were killed indrowning or wind-related incidents. At present, sources have saidthat the number of fatalities attributed to Ike in the U.S. hasrisen to 30 people in eight states, stretching from thehurricane-pounded Gulf Coast to the storm-battered Midwest.

More as it becomes available.