Insured-specific Losses from Sandy Expected to Hit $5 Billion

Initial economic damage estimated at $10 billion, or comparable to Hurricane Irene.

Insurance Networking News, October 30, 2012

Justin Stephani

The initial loss estimate for this week’s storm is about $5 billion dollars, according to EQECAT; the organization also cites initial economic damage estimate for this event of about $10 billion, or comparable to Hurricane Irene.

Other organizations are citing economic losses that could total $20 billion.

7 million people were without power across 15 states and Washington D.C., and 16 people have died from Sandy, according to Risk Management Solutions (RMS). A state of emergency has been declared in nine U.S. states, and a "major disaster" has been declared for New York City.

Eqecat believes damages to insured properties from Sandy will endure over several days, beginning now and extending into Wednesday as Sandy slows and persists over southern and central Pennsylvania.

Most of the damage is expected to comprise of housing and general commercial occupancies. Sandy is expected to cause widespread incidents of localized flooding. Storm surge along the coast has already produced reports of flooded streets in some areas.

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