Hurricane Frances Damage Estimates
September 7th, 2004Posted by: Roger Pielke, Jr.
Damage estimates for Hurricanes Frances and Charley are starting to show up, and they seem to be narrowing in on some totals.
Accord to Munich Reinsurance, quoted in this AP article, Frances could result in overall insured damage of $5 billion to $15 billion, but will probably be less than Charley which is estimated at $7.4 billion in insured losses. As a general but very rough rule, total damages are often estimated to be about twice the insured damages.
The New York Times reported yesterday that the total costs of the two storms could reach $40 billion, citing loss estimates from AIR Worldwide of $20 billion in total losses related to Frances, with $5 billion to $10 billion covered by insurance, and similar totals for Charley.
No doubt that 2004 is already an extreme year for Florida’s hurricane damage, but it is far, far from the worst case. Consider that from 1944-1950 the state of Florida experienced what today would be a billion dollar storm in each of those seven years. Here is the data, and here is the analysis.
Also, Mary Downton and I have a paper in press in Natural Hazards that discusses errors in tabulating disaster costs. Here is a link to a prepublication copy: