Verisk estimates Beryl US insured losses in $2-3bn range

Industry insured losses to onshore property from wind in the US for Hurricane Beryl will range between $2bn and $3bn, according to the extreme event solutions group at insurance technology and analytics firm Verisk.

Beryl formed on the evening of 28 June, becoming a hurricane on 29 June, and strengthening into a major hurricane the following day.

On 1 July, the storm passed through the Windward Islands as a Category 4 hurricane and would go on to become a Category 5 hurricane later that day, the earliest Category 5 hurricane on record in the Atlantic.

On the morning of 2 July, Beryl reached its peak intensity with 165 mph sustained winds before beginning to slowly weaken later in the day as the storm encountered increasing wind shear.

“Despite tracking through an environment with favorable conditions for intensification, Beryl’s imperfect structure played a role in the storm, only strengthening to a fledgling Category 1 hurricane before making landfall near Matagorda Bay, Texas at around 4 a.m. CDT on July 8,” Verisk said.

At landfall, Beryl had estimated maximum sustained winds of 80mph and a central pressure of 979mb, before it tracked its way northward inland.

“Widespread and prolonged power outages in Texas are likely to be a legacy of Beryl’s arrival in the state,” Verisk said.

At peak, nearly three million households lost power in Texas from Beryl, with more than 2.2 million in Harris County alone, the technology firm said.

“The outages could well drive significant claims due to food spoilage, mold, and losses to additional living expenses and business interruption coverages.

“Heavy rainfall led to roadways and homes becoming flooded throughout the Houston area and in portions of western Louisiana. In terms of wind, there were reports of tree damage to roofs. Moderate levels of wind damage in the form of broken windows and tree damage to residential and apartment complexes were observed,” Verisk added.

Verisk’s loss estimate does not include the following:

• · Excess impacts due to power failures which may not be implicitly modeled
• · Losses from storm surge
• · Losses paid out by the US Government’s National Flood Insurance Program
• · Losses exacerbated by litigation, fraudulent assignment of benefits, or social inflation
• · Storm surge leakage losses paid on wind only policies due to government intervention
• · Losses from precipitation-induced flooding
• · Losses to inland marine, ocean-going marine cargo and hull, and pleasure boats
• · Losses to uninsured properties
• · Losses to infrastructure
• · Losses from extra-contractual obligations
• · Losses from hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event
• · Losses resulting from the compromise of existing defenses (e.g., natural and man-made levees)
• · Loss adjustment expenses
• · Other non-modeled losses, including those resulting from tornadoes spawned by the storm
• · Losses for US offshore assets and non-US property.