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NEW ORLEANS, Aug 29: Hurricane Katrina tore into Louisiana on Monday, although the massive storm appeared to spare low-lying New Orleans a feared deathblow and delivered much of its force to neighbouring Mississippi and Alabama.
Historic New Orleans, which has long feared extinction if a massive hurricane made a direct hit, endured extensive damage from Katrina’s 135mph winds after the storm came ashore from the Gulf of Mexico and roared along the coast.
By noon CDT (1700 GMT) Katrina’s winds had decreased to 105 mph, a Category 2 storm, with higher gusts and its centre was moving ashore at the Louisiana-Mississippi border.
The bowl-shaped city’s levee system appeared to be holding off the Mississippi River and Lake Pontchartrain on its edges. Officials said a breach occurred in nearby St. Bernard Parish, where Katrina’s eye passed and extensive damage was expected.
About 150 people were reported stranded on rooftops in that southeastern Louisiana parish, where officials said 8 to 10 feet of water swamped the region.
“We’re getting reports that (more than 20) buildings are collapsing throughout the city,” New Orleans Mayor Ray Nagin said, adding it remained unsafe at midday. “This city is under siege by Katrina.”
However, Katrina’s slight eastern turn that might have saved New Orleans brought its powerful winds and tides into Mississippi coastal tourist havens of Biloxi and Gulfport.
The National Hurricane Center said the exposed Mississippi coastline could expect 15- to 20-foot storm surges. Mobile Bay in Alabama was swelling on Katrina’s approach.
Winds sent debris flying through the New Orleans’ streets, blew windows out of high-rise hotels and tore through the roof of the Superdome, where US Sen. Mary Landrieu said 10,000 people had taken refuge.
Gov. Kathleen Blanco said in a news conference the damage had caused leaks and evacuees had been moved to dry areas in the stadium, but there was no immediate danger.
INSURANCE: Katrina may be the most expensive hurricane ever to hit the United States, costing insurers up to $26 billion, storm modellers said.
“We expect the bulk of damage to be wind-related, but there is significant flood risk to commercial insurers,” said Thomas Larsen, senior vice president at one modeller, Eqecat Inc of Oakland, California. “The track shifted east 25 miles (40kms), which relieved some pressure on New Orleans.”
Air Worldwide Corp of Boston estimated a $12 billion to $26 billion payout, just above Eqecat’s $12 billion to $25 billion forecast. Risk Management Solutions Inc of Newark, California estimated a $10 billion to $25 billion payout.
The higher estimates would make Katrina more costly than Hurricane Andrew, which resulted in $20.9 billion of claims, after adjusting for inflation, when it slammed into Florida in 1992, the Insurance Information Institute said.
Eqecat cut its forecast for Katrina from as high as $30 billion after the storm tracked east of New Orleans.
Among insurers in afternoon trading, Allstate Corp. was off 88 cents to $57.07; Hartford Financial Services Group Inc. dropped 93 cents to $73.78, and St. Paul Travelers Cos. fell 32 cents to $44.42.
—Reuters
