Insured flood and wind losses from Hurricane Ida are estimated at between $ 14 billion and $ 21 billion, according to CoreLogic Inc.
Irvine, California-based property information provider for insurers, said Wednesday that insured flood losses in residential, commercial and commercial real estate Louisiana Mississippi and Alabama are estimated at between $ 6 billion and $ 9 billion, which includes both storm surges and inland floods. Insured wind losses are estimated at $ 8 to $ 12 billion.
Hurricane Ida landed on Sunday less than 400 km from Hurricane Katrina landed in 2005, but the two storms were significantly different, says Tom Larsen, principal, insurance solutions, at CoreLogic, who compared Ida with Katrina and Hurricane Harvey.
"Although only 40% to 50% of the flood damage from Hurricane Ida seems to be covered by insurance, this is actually an improvement from the uninsured flood damage we saw from Hurricanes Harvey and Katrina," says Larsen.
More than 90% of the losses are estimated to be in Louisiana, primarily in the nine parishes in the New Orleans-Metairie-Hammond metropolitan area and in the Ascension, Lafourche, Livingston and Terrebonne parishes immediately to the west, CoreLogic said.
Also on Wednesday, Karen Clark & Co. appreciated insured losses from Hurricane Ida to nearly $ 1
Coastal areas in Louisiana saw significant structural damage to commercial and residential buildings from harmful winds, and low-level wind damage stretched further south into the Mississippi, KCC said.
Significant structural damage and fallen trees and power lines were reported throughout the southeast coast of Louisiana, including the Terrebonne, Lafourche, and Jefferson parishes. Some buildings, including schools and hospitals, in the area saw broken windows and major damage including total roof and wall collapse.
In New Orleans, major structural damage from strong hurricane forces was in most cases limited to older homes and businesses. The failure of all eight of the city's transmission lines and the collapse of a transmission tower in the Mississippi River cut off power to the entire city on Sunday.
Losses in Cuba and the Cayman Islands were limited to non-structural damage, reduced trees and power outages.
Hurricane Ida made two landings – the first on August 27 near La Columba, Cuba, with a maximum sustained wind of 80 mph, then on August 29 near Port Fourchon, Louisiana, with a maximum sustained wind of 150 mph.
Ida was weakened once inland and downgraded to a tropical storm in early August 30 near the Louisiana-Mississippi border; later that day it became a tropical depression.
The highest storm surge from Hurricane Ida exceeded eight feet along the Louisiana coast as the majority of the New Orleans water system kept the potentially damaging flooding at bay with a few exceptions such as when the water topped a small levee near Lafitte.
In a note Tuesday, Piper Sandler Research said that early model indications show insured losses of about $ 15 billion to $ 25 billion, but noted that these figures were "uncertain" given that Ida had just landed.
Most industry sources agree that the assessment of Ida's total cost will take months.
Piper Sandler research highlighted how losses can be distributed among the industry's main players based on their respective reinsurance positions.
For example, Chubb Ltd has $ 1 billion left in the United States but also sells reinsurance for which losses are difficult to predict, Piper said.
American International Group Inc. has a complex reinsurance program, according to Piper Sandler. It has $ 1.275 billion per event for personal lines, with access points ranging from $ 50 to $ 150 million. It has an incidence of $ 1 billion over $ 500 million for the southwestern United States and Gulf states. AIG also sells reinsurance through its operations including Validus Re, which has a limit of $ 475 million over $ 300 million.
Traveler Cos. Inc. buys relatively little reinsurance. It covers 75% of losses over $ 3 billion up to $ 5 billion.