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Up to $10bn insured flood losses from Florence, estimates CoreLogic

25th September 2018 - Author: Staff Writer

Catastrophe risk modelling specialist CoreLogic estimates that industry flood losses resulting from hurricane Florence will fall between $6 billion and $10 billion, with the National Flood Protection Program shouldering between $2 billion and $5 billion of that figure.

corelogic-logoCoreLogic estimates the uninsured flood loss to be between $13 billion and $18.5 billion, with wind losses estimated to be an additional $1 billion to $1.5 billion.

This brings the total economic loss estimate from insured flood, uninsured flood and wind damage up to between $20 billion and $30 billion.

This analysis includes flood losses for residential and commercial properties in the Carolinas and Virginia, contents and business interruption, but does not include broader economic loss from the storm.

This NFIP loss estimate takes the 445,000 residential and commercial property policies in force throughout the Carolinas and Virginia into consideration.

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CoreLogic states that insured losses represents the amount insurers will pay to cover damages. Unlike wind damage, which is covered by a standard homeowners policy, flood is a separate coverage, which is not mandatory outside the designated Special Flood Hazard Areas.

These figures differ significantly to those released by RMS today, which estimates the insured loss to fall between $2.8 billion and $5 billion; a figure that includes NFIP losses of between $800 million and $1.2 billion.

In addition, RMS’ total economic loss estimate of between $6 billion and $11 billion is in stark contrast to CoreLogic’s $19 billion and $28.5 billion figure.

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