Damage from Hurricane Irene could cost U.S. up to $7 billion
In its Monthly Cat Recap report, reinsurance intermediary Aon Benfield said that insured losses solely in the United States from Hurricane Irene are expected to range between USD $1.6-6.6 billion. The storm killed at least 46 people in the U.S. and injured dozens more, resulting in a dangerous storm surge and significant river flooding. Nearly eight million power outages were recorded at its peak, as well as damage to tens of thousands of homes, businesses, other structures and vehicles. Irene became the first landfalling hurricane in the U.S. since Ike in 2008.
The rate magnitude 5.9 earthquake that was centered in Virginia and felt as far north as Toronto and New Brunswick resulted in cracked monuments in Washington, D.C., structural damage and burst gas and water pipes in Virginia, West Virginia, New York, Maryland, New Jersey, Delaware and Pennsylvania. Economic losses from the earthquake were listed at approximately USD250 million, with insured losses of around USD100 million.
Meanwhile, in Texas and Oklahoma, extreme wildfire conditions led to dozens of homes being destroyed during August. Texas endured its hottest summer on record in 2011, combining as well with an historic drought.
Steve Jakubowski, President of Impact Forecasting, said: “The U.S. was impacted heavily by natural catastrophe events during August, but in some ways the situation could have been far worse. Hurricane Irene was initially expected to make landfall as a more significant storm, highlighted by the extensive measures taken by many states to evacuate residents and ensure that structures were secured. In the end, Irene weakened prior to coming ashore and the resultant damage is perhaps many times less than would have been the case had Irene remained a major hurricane at landfall, as was initially expected.”
