About $2.2B Insured Losses From Hurricane Idalia, Says KCC

Though it made landfall as a Category 3 storm, Hurricane Idalia impacted an area of low population and is expected to cause private insured losses of about $2.2 billion, according to catastrophe modeler Karen Clark & Co.

“Idalia made landfall along one of the least populated areas of the Florida Coast, which kept insured losses relatively low, highlighting the influence of location on total and insured damage,” KCC said.

Idalia made landfall at Florida’s Big Bend, near Keaton Beach, on the morning of Aug. 30 as a strong Category 3 hurricane with sustained winds of 125mph. It was the strongest hurricane to hit the Big Bend region since an unnamed storm in 1896. It then slowly weakened as it moved inland to impact Georgia, South Carolina, and North Carolina.

The firm estimates insured wind losses from Hurricane Idalia will be close to $2 billion, with another about $210 million in storm-surge losses. Storm surge could

KCC’s take on insured losses does not include National Flood Insurance Program losses or losses to boats and offshore properties. The estimated insured-loss tally takes into account residential, commercial, and industrial properties as well as auto.

The outlook of insured losses from KCC is lower than those previously released. Reinsurance broker BMS estimated insured losses of between $3 billion and $6 billion.

Economic losses could be much higher. AccuWeather said total damage and economic losses for the states hit by Idalia could be in the $18 billion to $20 billion range. KCC said the storm surge from Idalia was likely record breaking. However, the take-up rate for flood insurance is very low where Idalia struck.

Photo: Damage to Faraway Inn in Cedar Key, Fla. in the wake of Hurricane Idalia. (Douglas R. Clifford/Tampa Bay Times via AP)