Verisk Estimates Industry Insured Losses to Onshore Property for Hurricane Ian Will Range from USD 42 Billion to USD 57 Billion

The industry loss estimate includes estimated wind, storm surge, and inland flood losses resulting from Ian’s landfalls in both Florida and South Carolina; Majority of insured losses in estimate caused by wind damage in Florida

BOSTON, Oct. 03, 2022 (GLOBE NEWSWIRE) -- Verisk (Nasdaq:VRSK) estimates that insured losses to onshore property for Hurricane Ian will range from USD 42 billion to USD 57 billion. The industry loss estimate from Verisk Extreme Event Solutions includes estimated wind, storm surge, and inland flood losses resulting from Ian’s landfalls in both Florida and South Carolina. The loss estimate excludes certain elements, such as losses to the National Flood Insurance Program and any potential impacts of litigation or social inflation, that could cause the total insured industry loss to exceed USD 60 billion. 

Wind damage of USD 38 to 51 billion comprises the majority of the loss estimate. Storm surge (excluding losses from the NFIP) account for USD 3 to 5.5 billion of the loss estimate, and inland flood less than USD 1 billion. Approximately 1 percent of the total industry loss will come from the impacts of Ian’s South Carolina landfall.   

Overview of the damage  

Wind damage in varying degree was observed in all the areas impacted by Hurricane Ian’s windfield. Damage was more severe in and around the areas where Ian made landfall in southwest Florida. It ranged from significant loss of roof covers in residential homes to torn up roof membranes in commercial structures. Extensive damage is also seen to elements of building components and cladding. 

Storm surge also caused massive destruction to communities along the western coast of Florida where Ian made landfall. Residential construction in these areas are predominantly founded on slabs which do not afford a lot of elevation above the local ground surface. Surge damage caused collapse of several rows of beachfront residential homes. In some cases, homes were dislodged from their foundations.  

Manufactured homes constitute a significant portion of the residential inventory in southwest Florida when Ian made landfall. Several manufactured home parks in these areas saw massive damage including loss of roofs, damage to wall siding and near total destruction. 

What’s included in Verisk’s estimate 

Included in the estimate are losses to onshore residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverage. The estimate reflects the impacts of inflation on labor and materials over the past two years, as well as the effects of demand surge, when large numbers of property owners look to rebuild at the same time.