(by M. Riley)

Damage caused by Charley, the strongest hurricane to hit the Eastern coast of the U.S. since 1999, can lead to claims from policyholders as much as $10 billion as total damages from Charley, including uninsured losses, may exceed $15 billion.

As a result of numerous claims such insurers as Allstate Corp., State Farm Mutual Automobile Insurance Co. etc. will definitely have losses.

For instance, Allstate, the biggest publicly traded home insurer in Florida, having sold 8.4 percent of residential insurance premiums in the most damaged Charlotte County in 2003 , will probably have up to $196 million after-tax loss. The company is expected to get a $118 million reimbursement from a state hurricane insurance fund.

Hurricane Charley killed at least 16 and left tens of thousands homeless. Florida applied for catastrophic housing assistance for 10,000 households and 228 shelters have been opened to serve about 50,000 people. Florida Hurricane Catastrophe Fund is about to use its $5.6 billion in cash.