Irene: Insured losses in the Carolinas estimated between $200-$400 million

[News_Editor]

Irene: Insured losses in the Carolinas estimated between $200-$400 million

2011-08-28 21:36:14 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Hurricane Irene is estimated to have caused between $200 million and $400 million in insured losses in the Carolinas, catastrophe modeling company EQECAT reported on Sunday. More serious damage is expected in other areas along the U.S. East Coast.

The center of Irene made landfall on Saturday at about 7.30 a.m. local time near Cape Lookout on the Atlantic coast of North Carolina. It had maximum sustained winds near 85 miles (140 kilometers) per hour, and higher gusts, making it a category one hurricane on the Saffir-Simpson scale of intensity.

EQECAT, in a preliminary assessment, estimated that insured losses in North and South Carolina are expected to range from $200 million to $400 million. "Although Irene was a Category 1 hurricane at landfall, the sheer size of this storm has caused severe damage from storm surge and flooding," the company said.

Hundreds of thousands of people lost power in North Carolina due to damaged distribution lines, primarily caused by fallen trees and debris. Irene also produced heavier than initially expected rain totals, and coastal areas experienced 6 to 10 feet (1.8 to 3 meters) in storm surge.

"The estimated insured loss from this event for South Carolina and North Carolina is expected to range from $200 [million] to $400 million USD, with the bulk of the losses in North Carolina," EQECAT said in its preliminary assessment. "Strong winds and rain are expected to continue causing damage to Virginia and states further north."

EQECAT warned that, even though the system weakened to a tropical storm on Sunday morning, Irene remains a very dangerous storm which has 'significant' potential to cause damage and injuries. The catastrophe modeling company expects damage in New York City and New England's urban area to be more severe than in the Carolinas.

"The speed and size of Irene translates to extended durations of strong winds and debris; experience from Hurricane Ike (2008) reminds us that high-rise buildings pose significant vulnerability to damage from wind and debris, and the New England urban area has a large population of high-rise buildings that will be exposed to very strong winds," the company said. "It is very likely that a landfall of Tropical Storm Irene in New York will result in larger damages and losses than those seen in North Carolina."

It added: "The coincidence of a new moon (stronger tidal variation) during Irene will exacerbate flood and surge, and water heights may be 5 to 8 feet (1.5 to 2.4 meters) higher than normal close to New York City."

In addition to damage, Irene also resulted in the deaths of at least four people in North Carolina alone, including a 15-year-old girl. The total death toll along the U.S. East Coast as of Sunday morning was nine.

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