Hurricane Irma Property Damage, Loss Estimates as High as $65 Billion

Approximately 80 Percent of Estimated Flood Damage is Uninsured

According to CoreLogic, preliminary property loss estimates in Florida from Hurricane Irma, total insured and uninsured loss for both residential and commercial properties, including damage from both flood and wind, is estimated to be between $42.5 billion and $65 billion. Of this, an estimated $13.5 billion to $19 billion in insured loss is attributed to damage from wind for both residential and commercial properties.

Residential Loss

Flood loss for residential properties from Hurricane Irma is estimated at $25 billion to $38 billion. This includes storm surge, inland and flash flooding in Florida, Alabama, Georgia, North Carolina and South Carolina. Of this flood total, insured residential flood loss is estimated at $5 billion to $8 billion and uninsured residential flood loss is estimated at $20 billion to $30 billion. As a result, an estimated 80 percent of flood damage to residential properties from Hurricane Irma is not covered by any flood insurance.

Of the total wind damage, an estimated $11 billion to $15 billion represents residential loss. Most damage from hurricane wind is typically covered by private insurers.

Commercial Loss

Insured flood loss for commercial properties is estimated at $4 billion to $8 billion. Data for uninsured flood loss for commercial properties, which could equal or exceed insured loss estimates, is unavailable.

Of the total wind damage, an estimated $2.5 billion to $4 billion represents commercial loss.
Data Highlights:

  • Insured residential flood loss covered by the National Flood Insurance Program (NFIP) is estimated at $5 billion to $8 billion, representing one quarter of damaged homes.
  • This includes inland, flash and storm surge flooding.
  • More than 98 percent of residential flood insurance in the U.S. is provided through the NFIP.
  • Uninsured residential flood loss is estimated at $20 billion to $30 billion, representing 80 percent of damaged homes.
  • Insured commercial flood loss is estimated at $4 billion to $8 billion, the majority of which is covered by private insurers with a small percentage covered by NFIP.
  • Insured residential loss from wind damage is estimated at $11 billion to $15 billion.
  • Insured commercial loss from wind damage is estimated at $2.5 billion to $4 billion.

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COURTESY: WORLD PROPERTY JOURNAL

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