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CoreLogic pegs onshore Delta wind, storm surge losses at up to $1.2bn

14th October 2020 - Author: Charlie Wood

Catastrophe risk modeller CoreLogic has pegged the insured wind losses for residential and commercial properties in Louisiana and Texas from hurricane Delta at between $0.5 billion and $0.9 billion.

Hurricane Delta

(NASA via AP)

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

Insured storm surge losses is estimated to be an additional $0.2 billion to $0.3 billion while damage to offshore structures ranges from $0.8 billion to $1.5 billion.

Delta made landfall near Creole, Louisiana, on Friday, October 9, as a mid-Category 2 storm with a maximum sustained surface wind speed of 100 miles per hour.

The second hurricane in six weeks to make landfall along the southwestern coast of Louisiana, CoreLogic notes that Delta encountered an environment of high wind shear and weakened just before landfall in Cameron Parish, about 15 miles east of where Laura hit in August.

Corelogic’s estimate follows one from Karen Clark & Company which pegged the total insured loss to onshore properties at $1.25 billion.

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

“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.”

Due to legislation mandating a single annual hurricane deductible for homeowners, CoreLogic notes how most insured homes with damage from Laura and Delta will be subject to only a single hurricane deductible, unless a homeowner has changed insurance carriers between storms.

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