Hurricane Ida Causes $27-40 Billion in Losses, CoreLogic Estimates
September 2, 2021
Insured and uninsured losses from wind, storm surge and inland flooding damages to residential and commercial properties in Louisiana, Mississippi and Alabama caused by Hurricane Ida are estimated between $27 billion to $40 billion, according to data from CoreLogic.
Hurricane Ida, the fourth hurricane and second major hurricane of 2021, rapidly intensified into a Category 4 hurricane before making landfall near Port Fourchon on Aug. 29, the 16th anniversary of Hurricane Katrina. According to CoreLogic, much of Louisiana’s housing stock was spared from the worst of the initial landfall, as Port Fourchon is a remote area approximately 15 miles southwest of Grand Isle and is known for its significant transport of petroleum. In areas near Hurricane Ida’s landfall, destructive winds exceeded 145 mph. Substantial damage to property from wind and flooding occurred in the days immediately following the storm.
CoreLogic’s estimates do not include losses sustained in the Northeast due to flash flooding. The remnants of Hurricane Ida on Sept. 2 resulted in historic flooding in the Northeast, leaving at least 14 dead.
Total insured flood loss for residential and commercial properties in Louisiana, Mississippi, and Alabama is estimated to be between $6 billion and $9 billion, which includes both storm surge and inland flooding. Uninsured flood loss for this area is estimated to be between $8 billion and $12 billion. Insured wind losses are an estimated additional $8 billion to $12 billion. More than 90% of the losses are estimated to be in Louisiana, primarily in the nine parishes in the New Orleans-Metairie-Hammond metropolitan area and in the Ascension, Lafourche, Livingston and Terrebonne parishes immediately to the west.
“Hurricane Ida made landfall less than 40 miles away from where Hurricane Katrina made landfall, but the two storms had substantially different characteristics,” said Tom Larsen, principal, insurance solutions at CoreLogic. “Even though Hurricane Ida was a higher wind-speed Category storm at landfall, Hurricane Katrina had a much larger wind field and had spent many hours as a Category 5 hurricane before weakening during its approach to landfall. It brought much higher storm surge than Hurricane Ida and flooded 80% of New Orleans in addition to devastating the Mississippi coast. With climate change affecting the ocean’s temperatures, we should expect to see more frequent and destructive tropical cyclone activity. Homeowners and regional public agency leaders should prepare for more resilient city infrastructure and financial protection from catastrophe.”
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