How much will Hurricane Debby cost the insurance industry?

Karen Clark & Company (KCC) has estimated that privately insured losses from Hurricane Debby will amount to approximately $1.4 billion in the US, according to its high-resolution reference model.

The breakdown of the estimated losses includes $845 million from wind damage, $130 million from storm surge, and $440 million from inland flooding.

The estimate covers privately insured damage to residential, commercial, and industrial properties, as well as automobiles and business interruption. However, it excludes losses related to boats, offshore properties, and those covered by the National Flood Insurance Program (NFIP).

Hurricane Debby made its first landfall on August 5 as a Category 1 hurricane with winds of 80mph in Florida’s Big Bend region. It made a second landfall on August 8 as a tropical storm with 50mph winds in South Carolina.

The storm brought significant rainfall to the eastern US, with the highest recorded total of 18.16 inches near Parrish, Florida, and totals exceeding 14 inches in parts of Georgia and the Carolinas.

An upper-level ridge over the western US created conditions with weak upper-level winds, causing Debby to move slowly across the southeastern US. The lack of steering currents led to an erratic track as the storm moved off the coast of South Carolina.

Hurricane Debby is the third hurricane in the past decade to make landfall in Florida’s Big Bend region, following Hermine in 2016 and Idalia in 2023. The storm’s slow movement up the eastern US resulted in widespread damage from strong winds, storm surge, and inland flooding.

The initial landfall in a sparsely populated area of Florida, followed by a rapid weakening of the storm after moving inland, helped limit the extent of wind-related damage. Storm surge reached six feet in Cedar Key, Florida, and four feet in parts of Tampa Bay.

Coastal flooding also occurred in Crystal River and Horseshoe Beach, though it was less extensive than last year’s Hurricane Idalia, causing only minor damage. The second landfall in South Carolina resulted in storm surge of one to two feet.

Debby’s slow forward motion allowed it to deliver significant rainfall, leading to widespread inland flooding along the east coast. Rainfall totals exceeded a foot in some areas of Florida, Georgia, and the Carolinas. As the storm continued northward, several inches of rain were recorded from Virginia to Maine.

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