Insured Losses from Hurricane Nate Could Top $1B
Catastrophe modeling companies have estimated insured losses from Hurricane Nate will reach $500 million and could even top $1 billion.
Hurricane Nate formed as a tropical depression on Oct. 4, 2017, and was upgraded to a tropical storm the next day, according to a Hurricane Nate Flash Estimate from Karen Clark & Co . The storm was the cause of extensive flooding in Nicaragua and Costa Rica before being upgraded to a Category 1 hurricane on Oct. 6, 2017.
Hurricane Nate’s expected intensification to a Category 2 before making landfall did not materialize. It eventually made landfall near Biloxi, Miss., as a Category 1 hurricane with peak winds of 85 mph on Oct. 8, and dissipated rapidly after making landfall.
Based on high resolution wind and storm surge models, KCC has estimated that the insured loss in the U.S. from Nate could reach $500 million.
KCC’s modeled loss estimates include insured wind and storm surge losses to residential, commercial and industrial properties and autos.
According to CoreLogic, Hurricane Nate preliminary loss estimates are estimated to be between $650 million and $1.35 billion. The loss estimates were calculated based on data analysis, total insured and uninsured loss for both residential and commercial properties, including damage from both flood and wind, the company said in statement. This total does not include residential or commercial uninsured flood loss, which was negligible.
Of those loss estimates, an estimated $500 million to $1 billion in insured loss is attributed to damage from wind for both residential and commercial properties, CoreLogic said.
CoreLogic estimates flood loss for residential properties from Nate will be between $100 million to $200 million. This includes storm surge, inland and flash flooding in Alabama, Florida, Louisiana and Mississippi. The vast majority of flood damage from the storm is expected to be insured because its low severity kept the flooding contained to Special Flood Hazard Areas (SFHA), which is required by FEMA to have flood insurance.
Of the total wind damage, CoreLogic said an estimated $375 million to $750 million represents residential loss.
CoreLogic estimates insured flood loss for commercial properties will be between $50 million to $150 million. Data for uninsured flood loss for commercial properties was negligible.
Of the total wind damage, an estimated $125 million to $250 million represents commercial loss.