Winter storm could cost insurers $5.4 billion: KCC

Winter Storm Elliott, which brought snow and freezing temperatures to a huge swath of the United States late last week, caused an estimated $5.4 billion in insured losses, catastrophe modeler Karen Clark & Co. said Thursday.

Subfreezing temperatures reached the Gulf Coast, high winds cut power to tens of thousands of homes and businesses in the Southeast and lake-effect snowfall in the Great Lakes led to blizzard conditions around Buffalo, New York, the Boston-based company said in a statement.

The most affected states were Georgia, New York, North Carolina, Tennessee and Texas and commercial losses are expected to account for 50% of the insured losses, the statement said.

“The freezing temperatures account for the vast majority of the loss, which can result in widespread infrastructure disruptions and burst pipes throughout the residential, commercial and industrial sectors,” KCC said.