Combined Losses From Milton and Helene to Be $35B-$55B: Moody’s RMS
Moody’s RMS said private insurers can expect to dole out between $35 billion and $55 billion for hurricanes Milton and Helene.
A final industry-loss estimate for Hurricane Milton, a Category 3 that struck Siesta Key, Florida on October 9, will be published later this week, Moody’s RMS Event Response added. Last week it issued an estimate of insured losses for Hurricane Helene of between $8 billion and $14 billion.
The insured-loss estimate is for wind, storm surge, and rain-induced flooding and includes “a combination of observational data, detailed field reconnaissance so far spanning more than 2,000 miles, and aerial imagery analyses from both storms in the affected region,” said Mohsen Rahnama, chief modeling officer at Moody’s.
Fitch Ratings last week said it expected just Hurricane Milton to cause between $30 billion and $50 billion in insured losses.
Related: Experts Predict Impacts of $25B+ Milton Hit to Insurers, Reinsurers
Moody’s RMS said the assessment of losses from the storms is challenging, especially since they occurred about two weeks apart. The challenges include the consideration of damage from numerous tornadoes spawned by Milton. Coverage leakage may also be a factor, added the catastrophe modeler. The same properties may have been affected by Milton and Helene.
Attribution and deductibles are also being considered, Moody’s added.
“If a claim was opened after Helene and if there is additional damage in Hurricane Milton, it will likely result in a single payout, but there will be questions on which event the payout is assigned to and the resulting impact on potential reinsurance recoveries,” the company said.
Photo: A house sits toppled off its stilts after the passage of Hurricane Milton, alongside an empty lot where a home was swept away by Hurricane Helene, in Bradenton Beach on Anna Maria Island, Fla. (AP Photo/Rebecca Blackwell)