Superstorm Sandy surges to insured hit of up to $22 billion

Hurricane Sandy, which made landfall in New Jersey and New York in late October, has caused economic losses of over $70 billion in the two states, making it the second most expensive hurricane to hit the U.S., after Katrina. In terms of insured losses, AIR Worldwide updated its estimates from the storm in late November to $16-22 billion. Disaster modeling firm EQECAT also noted in early November that Sandy caused up to $20 billion in insured losses.

The updated estimate from AIR is a result of the latest available information on surge height and extent from the U.S. Geological Survey, surface wind speed observation data, and findings from AIR’s post-disaster survey teams, notes a statement from the catastrophe modeler. AIR reports the estimates include wind and storm surge damage to onshore residential, commercial and industrial properties and their contents, automobiles, and time element coverage (additional living expenses for residential properties and business interruption for commercial properties).

While most of the damage was reported south of the border, the Insurance Bureau of Canada (IBC) noted preliminary estimates for insured losses in Canada from Sandy at about $100 million. Data suggests that thousands of claims have been filed for damage to homes, cars and businesses in the wake of the storm_, which hit Ontario and parts of Quebec.

The National Insurance Crime Bureau in the U.S. reports that the number of vehicles damaged from Sandy to be 230,000. The Ontario Motor Vehicle Industry Council (OMVIC) is reminding consumers to be vigilant as storm and flood-damaged vehicles from Hurricane Sandy’s aftermath may enter the province’s market. This is somewhat of a “historical pattern,” noted OMVIC.

The 2012 Atlantic hurricane season officially ended Nov. 30, with 19 named storms, including Hurricane Sandy. Ten named storms became hurricanes last year, according to the U.S. National Oceanic and Atmospheric Administration (NOAA). The average number of named storms per year is 12, and for hurricanes is six, making 2012 an active year.