Hurricane Karl caused $100-200 million in insured losses
Hurricane Karl hit Mexico’s east coast on September 17, causing widespread damage. AIR Worldwide said that while economic losses from Hurricane Karl are likely to be significant, insurance take-up rates in Mexico are relatively low, so insured damage is expected to be much lower. As Karl was a small storm with hurricane force winds extending outward only 25 miles, the damaging wind footprint was limited mainly to Veracruz and the flood footprint extended only 50 to 75 miles inland. Using the available meteorological parameters and track for Hurricane Karl since its landfall, the AIR tropical cyclone team estimates that insured losses from this event are in the range of 1,300 million to 2,600 million MXN (100 million to 200 million USD). This loss estimate covers possible insured wind and flood damage to onshore properties in Mexico.
Hurricane Karl caused several rivers and canals to overflow, inundating large portions of the state of Veracruz.
Mexico has experienced one of the wettest seasons on record, with widespread flooding in February from unseasonal torrential rains, flooding in the northern states from the remnants of Hurricane Alex in July, and weeks of heavy rain affecting large portions of southern and eastern states earlier this month. In the state of Veracruz, more than 100,000 people from low-lying areas were already flooded out of their homes prior to the arrival of Karl.
Veracruz officials estimate that half a million residents have been directly affected by the floods, and especially hard hit are the cities of Boca del Río, Cotaxtla, Carranza, Jamapa, and Medellín. Officials from the state of Oaxaca, just south of Veracruz, have reported 2000 flooded homes in their state. An estimated half a million hectares of cropland has been damaged.
Main concerns currently are to provide drinking water, food, medicine, and housing to those affected. Temporary shelters have been set up across the state, but many residents have refused to leave their damaged homes amidst reports of theft. Several people have been arrested for looting, and the military has been deployed to ramp up security. The government has planned to undertake a survey of every house affected by the floods to detail the damage. The state sponsored temporary employment program will be expanded to allow people to repair their homes.
