Claims News Service, Oct. 24, 3:30 p.m. EDT -- In a press release today, catastrophe risk modeling company AIR Worldwide Corporation estimated U.S. insured losses from Hurricane Wilma at $6 billion to $9 billion. Wilma strengthened overnight and made landfall at 6:30 a.m. this morning at Cape Romano, Florida, as a Category 3 hurricane with maximum sustained winds of 125 mph.
As a Category 3 storm, Wilma is significantly less intense than August's Hurricane Katrina, a strong Category 4 hurricane. In addition to Wilma's lower wind speeds and fast forward speed of near 23 mph, the decreased vulnerability of structures in Florida will lead to insured losses well below those of Katrina.
"Our detailed analysis of claims data from the 2004 season showed that Florida's stronger [building] codes led to less damage than would normally be expected had the storms hit a more vulnerable area of the coast, as reflected in our model."
Meanwhile, risk modeling firm Eqecat said in a release that, based upon current information provided by the National Oceanic and Atmospheric Administration about Hurricane Wilma, preliminary estimated insured losses in Florida could range from $2 billion to $6 billion, based upon wind speeds of 125 miles per hour at landfall.
Beyond wind damage to commercial and residential fixed structures, such as office buildings, factories, warehouses, and homes, Eqecat's insured loss estimates include business interruption, which covers loss of earnings as a result of the destruction of property; and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply.
Excluded from Eqecat's current estimates are insured losses related to offshore platforms, commercial flooding, private and commercial automobiles and similar vehicles, and marine assets, such as boats.
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