Risk Management Solutions estimates Hurricane Irene insured losses at $2B-$4.5B

NEWARK, Calif.—Catastrophe modeler Risk Management Solutions Inc. said Monday that it estimates U.S. insured losses from Hurricane Irene ranging between $2 billion and $4.5 billion.

The figures exclude inland flood losses from heavy rainfall and all National Flood Insurance Program losses from surge and rain, Newark, Calif.-based RMS said in a statement.

Irene, which made landfall in North Carolina as a Category 1 hurricane, weakened to a tropical storm and dropped extensive rainfall along the East Coast and caused severe flooding in the Northeast.

“Our estimate range reflects some uncertainty, including the definition of hurricane vs. non-hurricane deductibles for individual states, and the uncertainty surrounding losses from damage caused by tropical storm winds,” said Michael Kistler, director of model solutions at RMS, in the statement. “During Irene, a large swath of tropical-force and low hurricane-force winds swept across a large area of exposure causing widespread, low levels of damage.”

RMS estimated insured damages in the Caribbean, where Irene was a Category 3 hurricane, to total to $500 million to $1 billion, according to the statement.