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Thursday, 15 October 2020 23:04

Hurricane Delta Loss Estimates Add to Already Costly 2020 Season

Written by Danielle Ling, PropertyCasualty360

Index

Loss estimates are in for Hurricane Delta, the 10th named storm to hit the U.S. this season.

With Delta’s arrival on southern shores, the 2020 hurricane season breaks a 104-year-old record for the most named storms in a season.

 

Hurricane Delta made landfall in Louisiana on Oct. 9 as a Category 2 storm, and the second hurricane in six weeks to hit the southwestern coast of Louisiana. Affected areas in Louisiana and Texas experienced flooding rains, significant storm surge, road closures and strong winds as with Delta reached a maximum sustained surface wind speed of 100 mph.

 

The storm flooded communities and blew tarps off homes and businesses in affected regions that include areas damaged by Hurricane Laura just six weeks prior.

 

On Oct. 14, catastrophe modeling firm AIR Worldwide published its insured loss estimate and analysis for Hurricane Delta. AIR estimates that industry insured losses to onshore property resulting from Hurricane Delta’s winds and storm surge will range between $1 billion to $3 billion.

 

New analysis from CoreLogic also estimates insured losses for Hurricane Delta, breaking down costs by category. In its report, CoreLogic estimates insured wind losses for residential and commercial properties in Louisiana and Texas will fall between $0.5– billion and $0.9 billion. Insured storm surge losses are estimated to be an additional $0.2 billion to $0.3 billion, and damage to offshore structures ranges from $0.8 billion to $1.5 billion.


“Recovery from Hurricane Delta will likely be exacerbated due to ongoing rebuilding efforts following Hurricane Laura,” Tom Larsen, principal, insurance solutions at CoreLogic, said in the report.

 

“Damage from Hurricane Laura extended inland and concentrated on roofs and exterior building cladding, and Delta’s impact could have a double-jeopardy impact. For homeowners, it is critical to work hand-in-hand with insurers to understand their coverage and financial responsibility.”

 

CoreLogic’s analysis examines onshore losses for residential homes and commercial properties and incorporates contents and business interruption, but does not include broader economic loss from the storm.

 

We thank PropertyCasualty360 for reprint permission.

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