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Hurricane Irma might have caused $40B of insured industry losses in the U.S.

Storm led to massive flooding and toppled cranes in Miami

Scenes from Hurricane Irma
Scenes from Hurricane Irma

Hurricane Irma may have caused up to $40 billion worth of insured industry losses in the United States, according to an estimate from catastrophe modeling firm AIR Worldwide.

Losses will likely range from $20 to $40 billion, and the firm estimated that exposure value in counties running along the Gulf Coast up to Tampa would reach $1 trillion. All estimates were based on the National Hurricane Center’s forecast advisory for Irma as of Sunday at 5 p.m.

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AIR’s estimates for insurance losses include damages from wind and storm surges to automobiles, onshore industrial, commercial and residential properties, and factors such as an interruption of business for commercial properties and added living expenses for residential properties. The estimates do not include losses to uninsured properties, infrastructure, pleasure boats, or losses that would be paid out by the National Flood Insurance Program.

Irma also caused about $40 billion of CMBS debt, $6.41 billion of which was in Miami, according to an analysis from Morningstar Credit Ratings.

The storm destroyed roughly 25 percent of homes in the Florida Keys, left streets in downtown Miami flooded with water and caused multiple crane collapses. Related Companies chairman and Miami Dolphins owner Steve Ross has pledged $1 million to help with the recovery effort.

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