Hurricane Irene may have caused up to $400 million of insured losses in the Carolinas, according to a modeling company that estimates the cost of natural disasters.

Eqecat Inc. estimated the hurricane caused between $200 million and $400 million in insured losses in North and South Carolina, the first states impacted by Irene when it made landfall Saturday.

Though massive and slow moving, Irene's damage estimate for the Carolinas is just a fraction of the cost to the insurance industry of Hurricane Floyd, the costliest storm in North Carolina's history, which caused insured losses of $1.4 billion when it struck the state in 1999.

The Eqecat estimate squares with reports from coastal points in North Carolina, where it was reported that Irene had peeled off roof tiles, ripped away siding and sent debris flying through windows--but didn't manage to wipe entire neighborhoods off the map. The storm delivered sustained winds of 85 miles an hour in parts of the state as it crossed from Cape Lookout to Kitty Hawk before finding the Atlantic Ocean again.

Still, Eqecat noted in an alert to clients that Irene "produced heavier than initially expected rain totals--including up to 20 inches in North Carolina and more than 9 inches in Virginia."

The insured loss estimate doesn't include flood damage caused by the so-called storm surge that Irene pushed inland as it advance northward. But the surge--a tsunami-like phenomenon that's generated by the storm--arrived at close to low tide, said Matthew Nielsen, of Risk Management Solutions Inc., another disaster-modeling company. That timing meant the surge didn't reach too far inland as it washed ashore.

After Floyd, the federal government spent $463 million on claims paid by its National Flood Insurance Program, according to the Insurance Information Institute.

Experts cautioned late Saturday that residents in the Northeast should still treat Irene seriously, even though Irene hadn't set records in North Carolina. The storm was moving over New York City Sunday morning as it headed toward Connecticut and points north.

Insurers like Allstate Corp. (ALL), Travelers Cos. (TRV) and USAA have positioned disaster-response teams along the East Coast so they can begin sending adjusters to the site of damaged homes as soon as Irene passes by.

State Farm Mutual Automobile Insurance Co. is the largest home insurer in the states in Irene's path. Allstate ranks second by premium revenue, and Liberty Mutual Group is third, according to data collected by SNL Financial.

-By Erik Holm, Dow Jones Newswires; 212-416-2892; erik.holm@dowjones.com

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