Hurricane Otis insurable losses from wind pegged at $10B-$15B
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CoreLogic Inc. Thursday estimated that insurable, ground-up losses from wind damage due to Hurricane Otis in Mexico will be between $10 billion and $15 billion.
This estimate only includes damage from wind and does not include losses from coastal or inland flooding, according to a CoreLogic statement.
The estimate includes damage to buildings and contents only. It does not include business interruption or the costs associated with additional living expenses.
Residential, commercial, industrial and agricultural structures are included. Government property, infrastructure, crops and livestock are not included, the statement said.
Hurricane Otis made landfall over the southwestern coast of Mexico on Wednesday at 1:25 a.m. local time, with maximum sustained wind speed at landfall estimated at 165 mph by the National Hurricane Center, making Otis a Category 5 hurricane.
The core of Hurricane Otis made a direct landfall over the greater Acapulco area. Warm sea surface temperatures and low wind shear allowed the storm to intensify from a category 1 to a major hurricane in less than 24 hours, the statement said.
The financial impact incurred by private insurance markets may be lower than the total insurable modeled loss as property insurance penetration is lower in this region, where coverage is most likely limited to hotels and resorts, the statement said.
