Hurricane Laura onshore property insured losses up to $8bn: AIR Worldwide

Insured losses to onshore property resulting from Hurricane Laura wind and storm surge will range between $4 billion and $8 billion, according to catastrophe risk modeling firm AIR Worldwide.

The vast majority of impacts were in Louisiana, as Hurricane Laura slammed the coastal town of Cameron, in Cameron Parish, and the town of Lake Charles, Calcasieu Parish, 30 miles from the coast, causing widespread destruction to buildings of all types.

Laura made landfall near Cameron, Louisiana, close to the Texas border, on August 27 as a strong category 4 storm, bringing catastrophic winds, around 15 feet of storm surge, and widespread heavy rain across the Gulf region, with wind and rain continuing north into Arkansas.

AIR expects the combination of Laura’s track through relatively lower populated areas and its Rmax on the smaller side to keep insured losses down somewhat, despite its major hurricane status at landfall. The storm caused damage to roofs and structures, along with upended vehicles, damage to power lines, roads, railways, and other infrastructure.

“Residential buildings in and around Lake Charles saw significant damage to roofs of all geometries and with various roof cover types," said Cagdas Kafali, senior vice president of research, AIR Worldwide. "Residential building envelopes were breached due to debris impacts and the damage was further exacerbated in many cases due to the impacts of storm surge. Residential homes in Louisiana are founded primarily on crawlspace and slab foundations, both of which are vulnerable when it comes to flood damage.”

Kafali added: “Although comparisons between Laura and Hurricane Rita (2005) have been made, they differ in two important ways: Rita was a larger storm and hit a more populous area than Laura did. Rita made landfall west of where Laura did, impacting population centers of Texas; Laura made landfall well east of Houston and west of New Orleans, keeping losses lower.”