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This figure includes property damage and business interruption caused by wind and coastal flooding to residential, commercial, industrial properties, and auto lines of business. RMS estimates that residential insured losses represent approximately 60-70 percent of the total insured loss. Post-event loss amplification is not expected to be a factor from Hurricane Hermine.

The RMS calculations are based on its hazard reconstructions of Hermine’s windfield and storm surge using version 16.0 of the RMS North Atlantic Hurricane Models. The reconstructions show that on average approximately 30 percent of the event loss is associated with coastal flooding, including coverage leakage, in addition to an escalation in claims severity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business.

Tom Sabbatelli, hurricane modeler at RMS, said: “Hermine produced damage within the expectations of a category 1 hurricane and RMS analysis shows that this event won’t severely impact the insurance industry. Although Hermine was the first hurricane to make landfall in Florida in eleven years, it did not end Florida’s drought of major hurricane (category 3-5) landfalls.”

This estimate does not include losses to the National Flood Insurance Program. 

Furthermore, losses associated with inland flooding are not included, but are expected to be a minimal contribution to the total insurance industry loss.