KCC Estimates Hurricane Hilary Caused Nearly $600 Million in Insured Losses
Hurricane Hilary made landfall in Baja California, Mexico on August 20, 2023 as a tropical storm. The storm brought heavy rains and flooding to Southern California, causing widespread damage.
Catastrophe modeler Karen Clark & Company (KCC) estimates that Storm Hilary caused nearly $600 million in insured losses in the United States. The estimate includes privately insured damages to residential, commercial, and industrial properties, as well as auto losses. The estimate does not include boats, offshore properties, or losses to the National Flood Insurance Program.
KCC’s estimate is based on its proprietary catastrophe model, which simulates the physical and financial impacts of natural disasters. The model takes into account a variety of factors, including the storm’s intensity, the path it takes, and the types of structures and property in its path.
The majority of the insured losses from Storm Hilary are concentrated in Southern California. The storm caused widespread flooding in the region, damaging homes, businesses, and infrastructure. The flooding also caused mudslides and debris flows, which further damaged property and infrastructure.
Storm Hilary is the latest in a series of costly hurricanes to hit the United States in recent years. In 2022, Hurricane Ida caused an estimated $65 billion in insured losses, making it the costliest hurricane in U.S. history.
The increasing frequency and intensity of hurricanes is a major concern for insurers and homeowners. As the climate continues to change, it is likely that we will see more costly hurricanes in the future.
If you live in an area that is prone to hurricanes, it is important to have homeowners insurance. Homeowners insurance can help to protect you from the financial losses that can result from a hurricane.
You should also make sure that your homeowners insurance policy includes coverage for flooding. Flooding is often not covered by standard homeowners insurance policies, so you may need to purchase a separate flood insurance policy.
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