The Implications For Insurers If A Hurricane Is A Wind Versus Water Event

With hurricane season in the US about to take off, insurance experts would do well to look back on events from the past year and consider the implications of hurricanes that submerge communities versus ones that blow them away.

Hurricane Florence, which pummelled the Carolinas in September, was a particularly notable catastrophe, as was Hurricane Michael, though the flood and wind damage inflicted by these events landed on opposite ends of the spectrum.

“The flood damage from Florence caused more than 10 times as much loss as the damage from wind. But whereas wind damage was insured, 85% of the losses from flood were not, causing financial hardship for affected property owners,” said Shelly Yerkes, senior professional of product management at CoreLogic.