Wilma losses between $6 billion and $10 billion: RMS

Insured losses in the U.S. from Hurricane Wilma are likely to range between $6 million and $10 billion, according to Risk Management Solutions (RMS).
RMS says its estimate is based on current information about landfall location and wind speeds. It says damages will arise from onshore damage resulting from wind and coastal storm surge, business interruption and increased costs for materials and services needed for repairs (demand surge).
Hurricane Wilma made landfall at 6:30 am EDT on the southwest Florida coast near Cape Romano (20 miles west of Everglades City) as a Category 3 hurricane with maximum sustained winds of 120 mph and a central pressure of 950 mb.
“At landfall the storm was larger and more intense than forecast, with an eye diameter of over 70 miles and hurricane force winds extending out 90 miles,” RMS noted. “The storm’s large diameter and fast forward speed brought peak gusts of more than 100 mph to the Miami metropolitan region, which had escaped relatively unaffected by the string of hurricanes to affect Florida and the Gulf coast since August 2004.
“Due to the high density of property in Miami, even a low level of damage across the area could drive up insured losses.”
Hurricane Wilma’s track across Florida followed its devastating weekend landfall on Mexico’s Yucatan coast, where severe damage to beachfront properties and hotels has been reported. This region has not been hit by a major hurricane since Hurricane Gilbert struck the area in 1988 as a Category 5 storm. In the years since Gilbert, the Yucatan Peninsula has seen a tremendous tourism development boom, which will result in considerable property losses from Wilma’s impact, RMS says.