Hurricane Ian is projected to be one of the deadliest hurricanes in Florida history, and very early damages estimates put the potential insured damages in the $20 billion to $40 billion range, according to the Insurance Information Institute (Triple-I). CoreLogic is estimating that wind and storm surge losses will range from $28 billion to $47 billion. Breaking it down, CoreLogic anticipates wind losses to range from $22 billion to $32 billion, while storm surge is anticipated to result in losses ranging from $6 billion to $15 billion for both National Flood Insurance Program and private flood markets. "This is the costliest Florida storm since Hurricane Andrew made landfall in 1992 and a record number of homes and properties were lost due to Hurricane Ian's intense and destructive characteristics," Tom Larsen, associate vice president, hazard & risk, CoreLogic, said in a release. "Hurricane Ian will forever change the real estate industry and city infrastructure. Insurers will go into bankruptcy, homeowners will be forced into delinquency and insurance will become less accessible in regions like Florida." These early estimates come as Ian is expected to move toward South Carolina on Friday, September 30, and is anticipated to move further inland across the Carolinas Friday night into Saturday, according to the National Hurricane Center. Tornadoes are possible Friday and Saturday in the coastal Carolinas and southeast Virginia. According to Jackie May, managing director of Goosehead Insurance, flood and wind damage are likely to be the most common claims following Hurricane Ian. "For home insurance, it's important to distinguish that flood coverage is its own policy, while wind can be covered on the primary home itself," May tells PropertyCasualty360.com. "A big misconception is that flood is covered on home insurance policies and that isn't the case, so it's important to understand the risks of not carrying flood insurance." When it comes to water damage claims, it is considered flood damage when the water comes from the ground up, according to Mark Romero, a home insurance expert with Agile Rates. "So, for example, if a levy breaks and causes a flood during a hurricane, it's considered flood damage, not hurricane damage," May says. He notes that loss of use claims are also commonly seen after hurricanes as people are displaced from their homes. Unlike home policies, flood and wind are included with comprehensive coverage, according to May, who adds if policyholders have damage to their home or auto they should attempt to mitigate further harm to the property when safe to do so. These mitigation steps include tearing out carpets from flooded areas and drying out the house to prevent mold growth. "While the initial damage from the storm could be covered on your policy, failing to tend to the home and mitigate future and new damage might not be, so it is important to contact your insurance agent to confirm the coverages you do have and discuss how to avoid future losses," May says. |

Population boom's ripple effect

In recent years, Florida has experienced a population boom leading to varying increases in population density across the state. When asked how this could impact potential claims following Ian, May explains that when a heavily populated area has a catastrophic event, it has a ripple effect across personal lines in various ways. "The amount of damage that residents will face from homes to cars is going to be exponentially more compared to a less populated area," May says, adding: "It also can cause delayed turnaround times in the claims process due to high demand, with claims adjusters working around the clock assessing the damage. When this happens, insurance carriers will typically bring in claims adjusters and specialists from outside the area of impact to help as many people as quickly as possible." Related: |

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