Insured Losses from Hurricane Otis Estimated at Up to $6 Billion

Insured losses to onshore property as a result of Hurricane Otis will likely fall in the range of $3 billion to $6 billion, according to Verisk.

Verisk said the industry loss range includes insured estimates of wind and precipitation-induced flood across Otis's track, though most of the modeled loss is attributable to wind.

Hurricane Otis made landfall in western Mexico on October 25 as a Category 5 storm, with maximum sustained winds estimated at 165 miles per hour. It was the strongest hurricane on record to strike the region. The storm caused massive damage in and around Acapulco, killing at least 40 people. Economic losses from Hurricane Otis are expected to exceed $10 billion.

Verisk noted that the Acapulco coastline contains many large apartment and condominium buildings as well as hotels. Many of those buildings had a majority of windows blown out by Hurricane Otis's winds, while roof damage was also seen on many buildings near the coast. Smaller commercial and residential buildings in Acapulco also sustained major damage.

Verisk's Hurricane Otis insured loss estimate includes losses to onshore residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverage from wind and precipitation-induced flood.