Hurricane Ian: Estimated insurance losses revealed
Insurance losses for wind and storm surge for Hurricane Ian are expected to be between $28 billion and $47 billion, according to an analysis by CoreLogic. Wind losses for residential and commercial properties in Florida are estimated to be between $22 billion and $32 billion, while insured storm surge losses in the state are expected to be an additional $6 billion to $15 billion.
“This is the costliest Florida storm since Hurricane Andrew made landfall in 1992, and a record number of homes and properties were lost due to Hurricane Ian’s intense and destructive characteristics,” said Tom Larsen, associate vice president of hazard and risk management at CoreLogic. “Hurricane Ian will forever change the real estate industry and city infrastructure. Insurers will go into bankruptcy, homeowners will be forced into delinquency and insurance will become less accessible in regions like Florida.”
Residents affected by the hurricane are expected to experience standing water and sewer backups for days, slowing recovery. Significant infrastructure damage will also impede local governments’ ability to respond, CoreLogic said.
With inflation at a 40-year high, interest rates approaching 7%, and labor and materials shortages, CoreLogic anticipates that recovery from the storm will be slow and difficult.
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“We’re at a crossroads with Hurricane Ian in terms of adapting to today’s catastrophe risk environment,” Larsen said. “Infrastructure and building codes will evolve so that we can be more resilient ahead of what are bound to be more history-making storms in the near future. We cannot just rebuild; we need to restore for resilience.”
CoreLogic’s estimates include insured loss from damage to residential and commercial properties, including contents and business interruption. They do not include broader economic losses from the storm.