Hurricane Delta is estimated to have caused total insurance and perhaps reinsurance market losses of between $1.5 billion and $2.7 billion, taking into account both onshore wind and surge impacts as well as damage to offshore structures, CoreLogic has reported.
CoreLogic’s estimate for the onshore property insured loss from hurricane Delta’s wind and storm surge is between $700 million and $1.2 billion, which compares closely to Karen Clark & Company’s estimate that onshore insured losses would come close to close to $1.25 billion.
The onshore insured losses from hurricane Delta are broken down as $500 million to $900 million from wind damage to residential and commercial properties in Louisiana and Texas and another $200 million to $300 million for storm surge related damage to residential and commercial properties on the coast.
But CoreLogic’s estimate shows that the offshore impact, to oil and gas facilities, could be a greater proportion of the overall insurance and reinsurance market loss with hurricane Delta than was seen with recent Laura, as the company suggests that damage to offshore structures could cost insurers $800 million to as much as $1.5 billion.
Having spun through one of the world’s most active regions for offshore energy shortly after another hurricane, Delta may have caused damage more readily perhaps.
Taking CoreLogic’s range of $1.5 billion to $2.7 billion for both onshore and offshore insured losses from Delta, it seems likely the figure will be closer to the mid-point of that range, with $2 billion to $2.2 billion or so seeming a good place to start looking at total private market insured losses to onshore and offshore structures.
“Recovery from Hurricane Delta will likely be exacerbated due to ongoing rebuilding efforts following Hurricane Laura,” commented 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.”