Hurricane Ida Harm Estimate as much as $ 44 billion: RMS – Company Insurance
Risk Management Solutions Inc. announced Thursday that the total insured onshore and offshore damage in the United States from Hurricane Ida is estimated at $ 31 billion to $ 44 billion.
RMS estimates insured losses of $ 6 billion to $ 9 billion from rainfall-related flooding in the Atlantic states of Ida, in addition to previous loss estimates of $ 25 billion to $ 35 billion for the Gulf of Mexico region.
Most of the insured flood damage in the Ohio Valley, the Mid-Atlantic, and the Northeastern United States – about $ 4.5 billion to $ 7.0 billion – will be in the private market, with about $ 1.5 billion to $ 2.0 billion in the National Flood Insurance Program.
Loss for the Ohio Valley, Mid-Atlantic, and Northeast regions includes property damage and business interruption in the residential, commercial, industrial, and automotive sectors, as well as sources of post-event amplification damage and flood damage transfer to storm insurance.
The industry’s overall loss estimate for this event includes wind and storm surge damage in the Gulf of Mexico and precipitation-induced inland flooding in the Gulf Coast states (Alabama, Florida, Louisiana and Mississippi), Ohio Valley, mid-Atlantic and Northeast, Newark, California-based RMS said.
Ida's total insured losses reflect property damage and business interruptions in residential, commercial, automotive, industrial, infrastructure, ocean freight and property businesses, watercraft and other specialty lines, along with Post-Event Loss Amplification (PLA) and non-modeled sources of loss respectively.
Most of Ida's insured onshore damage is wind driven, followed by inland floods and then storm surges. Insured wind damage is driven by residential lines, insured water damage is dominated by commercial and industrial lines.
Rajkiran Vojjala, Vice President, Model Development, RMS, said a "significant" portion of Ida's total insured losses will be related to factors that exacerbate the damage after the event, including rising construction costs and labor shortages, as well as prolonged power outages. These factors only increase recovery and repair times, which in this case can lead to increased overall damage costs.
Ida landed near Port Fourchon, Louisiana on Sunday, August. 29 as a Category 4 hurricane. According to the National Hurricane Center, Ida produced sustained winds of 150 mph on landfall.