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Hurricane Barry loss estimates reach $900M

Posted On: Jul. 19, 2019 11:16 AM CST

Hurricane Barry

U.S. losses from Hurricane Barry range from $500 million to $900 million, according to leading catastrophe modelers.

Such losses, including insured losses associated with wind, storm surge and inland flood damage, and losses to the National Flood Insurance Program, will not exceed $500 million, Newark, California-based Risk Management Solutions Inc. said in a statement Friday.

CoreLogic Inc. on Friday said Barry’s toll will range from $500 million to $900 million, with insured flood and wind losses, excluding NFIP losses, between $300 million and $600 million.

Flood losses for residential and commercial properties in Louisiana are estimated to be between $200 million and $400 million, which includes storm surge and inland flooding, while insured flood loss from private insurers is estimated at less than $100 million, CoreLogic said, adding wind losses are estimated to be an additional $300 million to $500 million.

The insured residential and commercial flood loss covered by the NFIP is estimated to be between $100 million and $200 million and the uninsured flood loss is estimated to be approximately $100 million, CoreLogic said.

The CoreLogic analysis encompasses residential homes and commercial properties, including contents and business interruption but does not include broader economic loss from the storm, the statement said.

The RMS estimate includes insured losses from property damage and business interruption from wind, storm surge-driven coastal flooding, together with inland flooding to residential, commercial, industrial, and automobile lines of business, and the company  expects losses to the NFIP to represent approximately half of the total insured loss estimate, the statement said.

“Although, at first, Barry did not seem to generate the forecasted severe rainfall, it ended up producing more than 23 inches in southwest Louisiana and 13 to 14 inches in portions of Mississippi and Arkansas,” Holly Widen, RMS product manager, global climate, said in the statement.

The heavy rainfall resulted in flooding in less populated areas, however, and flood-driven losses are now expected to be lower than initially anticipated, she added.