Home International RMS : Hurricane Irene insured losses at USD$2.5 to $5.5 billion from...

RMS : Hurricane Irene insured losses at USD$2.5 to $5.5 billion from wind and surge in U.S. and Caribbean

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RMS estimates that U.S. insured losses from Hurricane Irene’s wind and surge impacts will fall between USD$2 and 4.5 billion, excluding inland flood losses from heavy rainfall and all National Flood Insurance Program losses from surge and rain. In addition, RMS estimates that insured damage in the Caribbean will total a further USD$0.5 to 1.0 billion, predominately from the Bahamas.

“Our estimate range reflects some uncertainty, including the definition of hurricane versus non-hurricane deductibles for individual states, and the uncertainty surrounding losses from damage caused by tropical storm winds,” said Michael Kistler, director of Model Solutions at RMS. “During Irene, a large swath of tropical-force and low hurricane-force winds swept across a large area of exposure causing widespread, low-levels of damage.”

On August 27, 2011 Hurricane Irene made landfall near Cape Lookout, North Carolina, as a strong category 1 hurricane, followed by a second landfall near Little Egg Inlet, New Jersey, as a weaker category 1 hurricane on August 28. Irene then became a post tropical storm as it passed over the United States and Canada border. Wind, storm surge, and inland flooding losses were observed in northern portions of the Caribbean and along the east coast of the United States.

Wind damage was observed throughout the Mid-Atlantic and Northeast, with a small number of reports of total roof detachment. More generally, the region saw less severe damage to roofs, siding, windows, and automobiles, resulting from downed trees and large branches.  Additionally, Irene caused widespread power outages and transportation disruptions. Over 5 million customers were without power – a number that rivals outages from Hurricane Isabel in 2003.

Source : RMS Press Release