CoreLogic estimates hurricane Ian insured losses as high as $53bn
CoreLogic said insured losses from hurricane Ian could be as much as $53bn. The data and analytics company said new analysis shows total flood and wind losses from hurricane Ian are between $41bn and $70bn, up from original estimates made a week ago.
The new analysis shows wind losses estimated at $23bn to $35bn, and uninsured flood to be between $10bn and $17bn.
This analysis includes residential homes and commercial properties, including contents and business interruption, and does not include broader economic loss from the storm. The inland flood analysis is based on the rainfall from 25 September to 4 October.
Flood loss from the National Flood Insurance Program (NFIP) and private insurance for residential and commercial properties is estimated to be between $8bn and $18bn, which includes both re-evaluated storm surge and new estimates for inland flooding, CoreLogic said.
Tom Larsen, senior director of hazard and risk management for CoreLogic, said in the statement that population expansion in Florida is the main driver of damages.
“The key reason hurricane Ian is so economically destructive is due to the massive growth in coastal real estate in Florida,” said Larsen. “Florida’s population has grown 50% since 1992 when hurricane Andrew hit Miami, with disproportionately more growth in south Florida.”
Hurricane Ian’s large wind field and landfall path caused severe wind and coastal storm surge damage along the densely populated coast, CoreLogic said. According to its analysis, residents have enjoyed increasing home equity gains throughout 2022, with homeowners reaching an average equity all-time high of nearly $300,000.
Meanwhile, Risk Management Solutions, a Moody’s Analytics company, estimated that insured losses from hurricane Ian could reach as high as $74bn.
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