Hurricane Zeta: CoreLogic values large losses

CoreLogic has announced residential and commercial wind and storm surge loss estimates for Hurricane Zeta. According to this new data analysis, insured wind losses for residential and commercial properties in Louisiana, Mississippi and Alabama are estimated to be between USD2.2 billion and USD3.5 billion. Insured storm surge losses are estimated to be an additional USD0.3 billion to USD0.5 billion.

The storm was a strong Category 2 hurricane with a maximum sustained surface wind speed of 110 miles per hour, just 1 mile per hour below Category 3 intensity. This marks the third hurricane in two months to make landfall in Louisiana. The storm resulted in at least six deaths and hundreds of downed trees and power lines. A nine-foot surge was measured in the Bay of St. Louis, Mississippi.

The analysis includes residential homes and commercial properties, including contents and business interruption and does not include broader economic loss from the storm.

“Natural disasters are increasing in frequency and severity across the board,” said Tom Larsen, principal, insurance solutions at CoreLogic. “Sophisticated catastrophe modeling estimates the impact of natural disasters with greater certainty, a key solution to addressing underinsurance issues and risk mitigation. It is imperative for mortgage lenders and insurance carriers to begin leveraging technology to better protect homeowners, accelerate local economic recovery and protect their business.”