The Cost of Hurricane Gustav

In 2005, insured losses from Hurricane Katrina reached $41.1 billion. Keep that in mind as clean up from Hurricane Gustav begins.

Risk Management Solutions has posted initial insurance claim estimates for Hurricane Gustav. The risk management company predicts claims from $4 to $10 billion for the hurricane. This estimate breaks down into $1 to $3 billion for offshore losses and $3 to $7 billion for onshore losses and business interruption. The estimate does not include any loss potential for failing levees or rainfall flooding.

RMS notes that 2008 is turning into a very active year for hurricanes. The National Hurricane Center is tracking three tropical storms: Hanna, Ike, and Josephine. Hanna will reach the Bahamas and will become a Category One hurricane within 36 hours according to forecasts.