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Ida insured losses up to $ 25B: AIR Worldwide



AIR Worldwide said on Friday that the industry insured losses to land properties from Hurricane Ida's winds and storm surge will be $ 17 billion to $ 25 billion.

These estimates include insured physical damage to property, including residential, commercial, industrial and auto structures and their contents from winds, wind-borne debris, storm surge and the effects of demand.

The loss estimates "also reflect an adjustment to take into account increased material and other repair costs in the current construction market" but do not include hurricane-induced flood losses, according to Boston-based AIR Worldwide, a Verisk Analytics Inc. company.

Ida made its first landing near Port Fourchon about 60 miles south of New Orleans, with a maximum sustained wind speed of 1

50 mph. Its second landing was southwest of Galliano, with a maximum sustained wind speed of 145 mph.

Ida's storm surge was along expected lines and generally not as severe as Hurricane Katrina, especially in the Mississippi and New Orleans. However, network disruptions caused by a lack of power, mobile data services and water can lead to Ida becoming a long-term event in terms of claims and payments, AIR said. , but wind damage was severe, with areas close to where Ida landed, such as Lafourche Parish, where Port Fourchon is located, particularly hard hit by extensive destruction. The Grand Isle Parish, a barrier island, has been declared uninhabitable.

Louisiana adopted improved building codes in 2018 to make structures more resilient, but enforcement varies geographically, says AIR, adding buildings that are older and precede the adoption of some of these standards can be expected to perform worse and sometimes become sources of debris that can affect adjacent newer buildings.

Building materials costs have increased significantly over the past year from supply chain disruptions in the construction market and will contribute to higher remodeling costs, AIR said.

“Although these costs have been reduced since the peak in July when they were 80% higher than in September last year, they are still around 30% higher. Repair costs are still rising significantly.

This latest loss estimate is broadly in line with other previous figures.

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