Hurricane Barry insurance losses at least $300 million, says risk modeller KCC

Insured losses from storm system Barry, which was briefly a hurricane, will be close to $300 million, according to Karen Clark & Company (KCC).

However, this estimate covers privately insured wind and storm surge damage to residential, commercial and industrial properties, and automobiles but not losses covered by the US government’s National Flood Insurance program.

The estimates are based on the KCC high resolution US Hurricane Reference Model, which monitored Barry as it came ashore near Intracoastal City, Louisiana, as a Category 1 hurricane on July 13.

Insured losses are made up of an accumulation of small losses over a large area, with isolated instances of damage caused by fallen trees across southern Louisiana, the catastrophe risk modelling firm said. Additional damage occurred close to where the hurricane made landfall, including damage to the roofs of residential buildings and significant damage to small structures.

The weather system reached a peak intensity of 75 mph just before making landfall, after which it weakened and was downgraded to a tropical storm, later downgraded further to a tropical depression.

Around 150,000 homes and businesses lost power in Louisiana and Mississippi, while intense rain caused of between three and six inches caused flooding. Forecasts of between 20 and 25 inches of rain did not occur, which meant major levees along the Mississippi River were not breached in New Orleans.

But some localised areas did experience significantly greater amounts of rainfall and as a result levees in less densely populated areas south of New Orleans, including in Plaquemines and Terrebonne Parishes, did overtop. KCC confirmed there was isolated flash flooding where downpours of three inches an hour occurred. It warned that additional flooding may happen on July 17 with heavy rain bands continuing north through Arkansas and Tennessee.

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