Insured losses from Hurricane Ian to onshore property will be between $42 billion and $57 billion, with much of the damage – $38-51 billion – coming from wind damage, according to Verisk.
“Damage was more severe in and around the areas where Ian made landfall in southwest Florida,” Verisk said in its report of the storm. “It ranged from significant loss of roof covers in residential homes to torn up roof membranes in commercial structures. Extensive damage is also seen to elements of building components and cladding.”
Manufactured home account for much of the residential inventory where Ian struck near Fort Myers, Florida. Verisk said several manufactured home parks experience massive damage, from loss of roofs to total destruction.
Storm surge losses to the private insurance industry could account for another $3-5.5 billion. Nearly all insured losses will be attributed to Florida, with less than 1% coming from Hurricane Ian’s subsequent landfall in South Carolina, according to Verisk Extreme Event Solutions.
Construction of residential homes in areas affected by Ian are mostly built on slabs. Storm surge caused “massive destruction” to these types of communities, including complete collapse.
The estimate excludes losses to the National Flood insurance Program as well as litigation or social inflation impacts to claims, which could cause the total to eclipse $60 billion, Verisk added.
On Friday, modeler Karen Clark & Co. estimated insured losses of nearly $63 billion from Hurricane Ian. This estimate did consider litigation and demand surge in Florida.
KCC Estimates Near $63B in Hurricane Ian Insured Losses
Meanwhile, catastrophe modeler RMS said its team is working to reconstruct the the challenging wind footprint of Hurricane Ian. RMS has not yet issued loss estimates to the public.
“Major Hurricane Ian is a historical event and very complex – a Category 4 event with a maximum 150 miles per windspeed and a 50-kilometer radius, massive record storm surge, and inland flood, all points to Ian most likely being one of the costliest events in Florida,” said Mohsen Rahnama, chief risk modeling officer at RMS, adding, “The split of losses between wind and storm surge will be contentious.”
“Basically, I believe this event will change the Florida insurance market landscape,” Rahnama said.
Related:
- Ian Aftermath Even Harder to Fix With Supply Chain Tattered
- Hurricane Ian Losses Up to $47B in Florida, Sinking More Insurers, CoreLogic Calculates
- Citizens’ Early Estimate of $3.8B in Ian Losses; Florida OIR Suspends Use and File
Topics Trends Catastrophe Natural Disasters Profit Loss Hurricane
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