The insured loss to onshore properties from the impacts of Hurricane Delta, the 10th named storm of the season to make a US landfall, is expected to be close to $1.25 billion, according to catastrophe risk modeller, Karen Clark & Company (KCC).
Hurricane Delta came ashore in the region of Creole, Louisiana as a Category 2 storm at 18:00 local time on Friday October 9th, after impacting Mexico’s Yucatan Peninsula on Wednesday October 7th.
According to KCC, moderate wind damage was evident in Cancun and Cozumel, including damage to roofs, openings, and building facades. Additionally, more than 200,00 customers lost power across the region, while toppled trees in the Yucatan Peninsula also blocked roads.
In the US, Delta brought high winds resulting in moderate damage to southwestern Louisiana. KCC notes that window openings, roofs, and building facades were damaged in an area stretching from Lake Charles, which was badly hit by Hurricane Laura, to Abbeville and inland to Opelousas.
The cat risk modeller states that structural damage from the storm in southwestern Louisiana was mostly confined to lightweight structures, alongside buildings hit by fallen trees. At one point, more than 700,000 customers were left without power in the affected states owing to Hurricane Delta.
As a result, KCC has put the insured loss to onshore properties at close to $1.25 billion, of which $950 million, or approximately 76% relates to wind and storm surge losses in the U.S., and $300 million to wind losses in Mexico.
KCC’s estimate includes the privately insured wind and storm damage to residential, commercial, and industrial properties and auto mobiles. However, it does not include NFIP losses or losses to offshore assets, or any potential impacts on losses due to COVID-19.
Analysts had said previously that it looks as though losses from Delta will be within established catastrophe reinsurance program limits, with the industry pointing to a low single-digit billion industry loss from the event.
It’s believed that Delta damaged equipment at numerous oil refineries in the region, while shuttering production at many others including as far away as Port Arthur in Texas. So, once any NFIP losses and impacts to offshore assets are included, the insured loss is expected to be higher than the $1.25 billion.