Verisk Estimates Industry Insured Losses from Hurricane Idalia Will Range from USD 2.5 Billion to USD 4 Billion

Most of the loss is attributable to wind damage

BOSTON, Sept. 04, 2023 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, estimates industry insured losses to onshore property for Hurricane Idalia will range from USD 2.5 billion to USD 4 billion. The industry loss estimate includes estimated wind damage and insured estimates of storm surge across Idalia’s track. A majority of the losses will be from damage due to wind.  

At around 7:45 a.m. EDT on August 30, Hurricane Idalia made landfall in Taylor County within Florida’s Big Bend region, near Keaton Beach, as a Category 3 hurricane. 

While Idalia made landfall in a sparsely populated region of Florida, catastrophic damage was observed in small communities like Perry, which took the brunt of the storm’s fierce western eyewall shortly after landfall, and Cedar Key, which experienced historic storm surge inundation. Fortunately, Tallahassee was largely spared from the worst as the storm’s center passed 60 miles to the east and saw three inches of rainfall and wind gusts into the 40s mph.  

Idalia’s forward speed brought the then Category 1 storm over the state boundary into Georgia near Valdosta. Significant damage was observed in Valdosta, where remnants of the western eyewall deluged the area with six inches of rain and brought powerful winds. As a result, widespread flooding and considerable structural and roof damage ensued.  

Idalia’s northeast track led the storm offshore in the early morning of August 31. While located offshore, Idalia brought tropical storm-force winds, heavy rain and powerful surf to the North Carolina coast. 

Wind and storm surge damage

Wind damage in varying degrees was observed in all the areas impacted by Hurricane Idalia’s wind field. Damage was more severe in and around the areas where Idalia made landfall in the Big Bend region of Florida, including Taylor and Suwanee counties. It ranged from significant loss of roof covers in residential homes to torn-up roof membranes in commercial structures.  

Varying levels of damage inflicted by fallen trees was observed along the path of Idalia. Cities including Tallahassee, Gainesville, Jacksonville, FL and Valdosta, Savannah, GA are reporting a large number of downed trees. This area is dominated by large pine trees, and these can lead to costly cleanup costs, roof replacements and associated costs. A similar phenomenon was seen in the aftermath of 2018’s Hurricane Michael in the city of Tallahassee where losses in excess of $1B were seen and driven primarily by tree-related damage. However, Hurricane Michael was much stronger than Idalia in its closest approach to Tallahassee.