Hurricane Katrina is set to be the most expensive storm to hit America, with damage claim estimates reaching $26bn.

Eqecat, a catastrophe management solution company, estimated insured property damage claims between $9bn and $16bn, with some estimates ranging as high as $26bn.

Eqecat senior vice president Thomas Larsen said: "We expect the bulk of damage to be wind-related, but there is significant flood risk to commercial insurers.”

Risk Management Solutions, a Newark risk forecaster, estimated that the insured losses would fall in the range of $10bn to $25bn.

Most of the damage will be registered where the storm made landfall on Monday morning in Louisiana, but the storm is still making its way up through Mississippi causing more damage.