Hurricane Michael Caused an Estimated $6-10 Billion in Insured Losses

FLORIDA- InsuranceBusinessMag.com writes that damage from Hurricane Michael likely caused somewhere between $6 billion and $10 billion worth of insured losses. Hurricane Michael struck land on Wednesday, October 10^, 2018, with such strength that it was nearly a Category 5 storm. The winds were reaching 155 mph making the storm the worst to hit Florida’s panhandle since recordkeeping began in 1851.

The high winds damaged the panhandle and parts of southern Georgia. Some minor wind damage took place in the Carolinas as well. The worst hit town was Mexico City, Florida, where most of the town’s structures were ruined. Other places that suffered severely include Panama City, Lynn Haven, and Callaway.

Some of the insurance losses will come in the form of property damage to commercial, industrial and residential property, as well as damage to automobiles. The buildings sustained damage from being hit by the wind, by debris, and by water. The contents of many buildings were also damaged or destroyed. Other costs will come in the form of living expenses for people who lost their homes, and commercial business interruption claims from businesses that were destroyed. Storm surge damage to automobiles will also add to costs.

In addition to shops and restaurants, other forms of commercial interests sustained severe damage. Many farmers lost much of their crops as a result of the severe storm. One cotton farmer says that his per acre yield will likely drop from 1000 pounds to 350.

For many residents, the losses are more than financial. Homes were destroyed taking with them photographs and other memorabilia that cannot be replaced.