NEW YORK (CNN/Money) - Hurricane Katrina could cost the insurance industry between $40 billion and $60 billion, one catastrophe modeling firm said Friday.

Risk Management Solutions increased its total loss estimate for insurers from its preliminary estimate of between $20 billion and $35 billion, saying that the impact of the levee break in New Orleans and subsequent flooding could cost the insurance industry an additional $15 billion to $25 billion.

Laurie Johnson, vice president at RMS, said the new flood estimate includes damage to automobiles and marine vessels as well as private high-end commercial flood insurance. She added that the estimates don't include the estimated $10 billion in losses the National Flood Insurance Program will incur.

The National Flood Insurance Program is administered by the Federal Emergency Management Agency, a unit of the Department of Homeland Security. With flood insurance largely unavailable in standard commercial or homeowner's policies, the NFIP -- which sells policies directly or through individual agents -- assumes all risk of damages in the case of a flood.

Some private insurers provide flood insurance for high-end homes or businesses in excess of the limit provided by the NFIP. Johnson said these excess flood policies are included in the revised estimate.

RMS also estimated that total economic losses could be as high as $125 billion, with at least 50 percent of the economic loss resulting from the flood in New Orleans. While some of the city has been drained, the Army Corp. of Engineers said that about 60 percent of the city remains flooded.

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