Total insured losses from Hurricane Ian to exceed $60bn, warns Verisk

The insurance industry loss estimate from wind, storm surge, and inland flood losses resulting from Hurricane Ian’s landfalls in both Florida and South Carolina is expected to range between $42 billion and $57 billion, according to modellers at  Verisk.

The insured losses to onshore property data certain elements, such as losses to the National Flood Insurance Programme and any potential impacts of litigation or social inflation.

Verisk Extreme Event Solutions, however, stated that including these elements the total insured industry losses are expected to exceed $60 billion.

According to its latest report, wind damage of $38 billion to $51 billion comprises the majority of the loss estimate. Storm surge (excluding losses from the NFIP) account for $3 billion to $5.5 billion of the loss estimate, and inland flood less than $1 billion. Approximately 1 percent of the total industry loss will come from the impacts of Ian’s South Carolina landfall.

Damage was more severe in and around the areas where Ian made landfall in southwest Florida, analysts noted. 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.

Storm surge also caused massive destruction to communities along the western coast of Florida where Ian made landfall, the report said. Residential construction in these areas are predominantly founded on slabs which do not afford a lot of elevation above the local ground surface, Verisk noted.

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