Texas and Oklahoma Floods to Cost $3 Billion

According to analysis by Impact Forecasting, Aon Benfield’s catastrophe model development team, the severe weather and floods that hit Texas and Oklahoma during May 2015 will likely result in $3 billion in economic losses and cost insurers more than $1 billion.

Lake Texoma Flooding, USA, May 2015. Photo: U.S. Army photos by Edward N. Johnson, USACE Tulsa, PAO
Lake Texoma Flooding, USA, May 2015. Photo: U.S. Army photos by Edward N. Johnson, USACE Tulsa, PAO

Thunderstorms caused major flooding across the states of Texas and Oklahoma during May 2015. Between 26 and 30 May, 28 were killed in Texas and 4 in Oklahoma.

By 29 May 2015, President Obama had declared a disaster in Texas. May 2015 was the wettest month ever recorded in both states.

According to Aon Benfield, more than 5,000 homes sustained flood inundation in Texas alone, including in the metro regions of Houston, Austin and Dallas. Hundreds of additional homes sustained flood damage in the Oklahoma metro areas of Tulsa and Oklahoma City.

In their report, Global Catastrophe Recap for May 2015, Aon Benfield say:

“Total aggregated severe thunderstorm and flood economic losses for May are expected to approach USD3.0 billion. Overall insured losses will easily exceed USD1.0 billion, though given low flood insurance penetration in parts of Oklahoma and Texas, the losses could have been even more robust”.

The full report can be found here.

Texas Floods Damage 10,000 Vehicles

Aside from loss of human life and building damages, the floods and storms are likely to leave many auto insurers facing heavy costs. National Insurance Crime Bureau say that an estimated up to 10,000 insured vehicles suffered water damage in the recent floods in Texas.