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Hurricane Sally insured losses $1-3B: Modelers

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Sally

Hurricane Sally’s winds, storm surge and inland flood caused insured losses of $1 billion to $3 billion, according to AIR Worldwide, part of Verisk Analytics Inc.

 

Boston-based catastrophe modeler Karen Clark and Co. said Monday it estimates the insured loss to onshore properties from Hurricane Sally will be about $2 billion.

 

This includes privately insured wind and storm surge damage to residential, commercial, and industrial properties and automobiles but does not include National Flood Insurance Program losses, losses to offshore assets, or any potential impacts on losses due to COVID-19, KCC said in a statement Monday.

 

Wind damage represented the majority of the losses, AIR said in its statement Monday, including minor roof damage, broken windows, downed trees, toppled church steeples and other structures such as gas station canopies. There were some isolated major structural failures, and damaged infrastructure in Alabama and Florida, AIR said.

 

AIR’s estimates include losses to onshore residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverage.

 

Sally made landfall at 4:45 a.m. CDT on Sept. 16 near Gulf Shores, Alabama, and dumped up to 30 inches of rain in Orange Beach, Alabama, and 24.8 inches in downtown Pensacola, Florida, according to AIR.

 

Sally was the first hurricane to make landfall in Alabama since 2004’s Ivan, 16 years earlier to the day, KCC said, adding that with Sally, eight named storms have affected the U.S., the most by mid-September in recorded history.

 

The top commercial insurers in Alabama are CNA Financial Corp., with $77 million in Alabama direct premiums written; The Travelers Cos. Inc., with $75 million; and Liberty Mutual Group Inc., with $74 million, according to Moody’s Investor Services Inc.

 

Since Sally looks to be primarily a flood event, Moody’s said it expects that the NFIP, part of the U.S. Federal Emergency Management Agency, will absorb “significant” losses because standard property/casualty homeowners policies do not include flood damage.

 

Moody’s added that property/casualty insurers and reinsurers will see losses on commercial and some residential properties, although loss estimates will take weeks.

More insurance and risk management news on the coronavirus crisis here.

 

 

 

 

 

 

 

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