State Farm Insurance is poised to start processing claims in the wake of Hurricane Sandy. Spokeswoman Holly Anderson says the Bloomington based company has sent its catastrophe vehicles to North Carolina and pre-positioned other assets.
"We already have tems on the ground in New York and New Jersey. They are just outside the impacted area so they can kind of move in. You know we have the largest claims team in the industry and we're ready to roll here."
Sandy could cause up to $10 billion in damage. A significant portion of that would be from storm surges and will be covered under a federal flood insurance program. State Farm, however, has significant exposure because of its market share. For instance, by policy sales it covers 15% of homeowners in New York and nearly 13% of autos in that state. State Farm also has significant reinsurance to defray some of the risk. Anderson says the people who evacuated ahead of the storm can provide an example to Midwesterners of the importance of keeping an up to date disaster plan for safety.
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