Humberto hits Texas, incurs damages less than $500 million

Hurricane Humberto, who made landfall on southeast Texas earlier this week, likely caused damages that will not exceed US$500 million [approximately Cdn$515.37 million], reports Risk Management Solutions (RMS).
The figure includes wind damage to residential, commercial and industrial properties and business interruption resulting from power outages or damage to property, an RMS release says.
Wind damage has been fairly limited for two main reasons: Humberto made landfall in a relatively sparsely populated area of southeast Texas; and hurricane force winds were mainly confined to the northeast, extending outward to about 15 miles (30 km), the statement adds.
Because Humberto developed near the Texan coast it did not have the opportunity to gather momentum and reach major hurricane status, Claire Souch, senior director of model management, RMS.
If the storm had formed further south in the Gulf, where waters are warmer and deeper, it would have had more time to intensify before striking land, she added.
Due to Humbertos relatively small windfield, damage is mainly confined to Jefferson, Orange and Galveston counties, the RMS release says.
RMS does not expect flood damage to significantly impact the total insured losses, given that the flooding seems not to be as severe as what was initially expected and flood insurance uptake in the U.S. is relatively low.