Insured Losses From Hurricane Hermine Estimated Under $400 Million

RMS, the global catastrophe risk management firm, estimates that the insured loss associated with wind and coastal flooding from Hurricane Hermine will not exceed $400 million.

This figure includes property damage and business interruption caused by wind and coastal flooding to residential, commercial, industrial properties, and auto lines of business. RMS estimates that residential insured losses represent approximately 60-70 percent of the total insured loss. Post-event loss amplification is not expected to be a factor from Hurricane Hermine.

The RMS calculations are based on its hazard reconstructions of Hermine’s windfield and storm surge using version 16.0 of the RMS North Atlantic Hurricane Models. The reconstructions show that on average approximately 30 percent of the event loss is associated with coastal flooding, including coverage leakage, in addition to an escalation in claims severity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business.

Tom Sabbatelli, hurricane modeller at RMS, said: “Hermine produced damage within the expectations of a category 1 hurricane and RMS analysis shows that this event won’t severely impact the insurance industry. Although Hermine was the first hurricane to make landfall in Florida in eleven years, it did not end Florida’s drought of major hurricane (category 3-5) landfalls.”

This estimate does not include losses to the National Flood Insurance Program. Furthermore, losses associated with inland flooding are not included, but are expected to be a minimal contribution to the total insurance industry loss.

Hurricane Hermine, September 2016. Image: NASA
Hurricane Hermine, September 2016. Image: NASA

The above article is via a press release from RMS.

Flood Summary

Last updated: September 11, 2016
Event
Hurricane Hermine, September 2016
Date
September 2 to September 6, 2016
Type
River flood
Cause
Extreme rainfall
Hurricane Hermine made landfall near St Marks, on the gulf coast of Florida at 01:30 EDT on Friday 02 September. It was downgraded to a post-tropical storm on 03 September. Some flooding was reported Taylor, Franklin and Pasco counties in Florida. The hurricane also caused storm surge, particularly in Cedar Key, Florida, Aurora in North Carolina, and the Virginia Tidewater region.

Locations

Pasco County, Florida

Magnitude

River level
7.64 metres
Anclote river at Elfers, Florida - September 4 to September 4, 2016

Damages

Evacuated
2,000
Pasco County, Florida - September 3 to September 7, 2016