RMS increases Wilma damage estimate

Risk Management Solutions (RMS) has increased its estimate for U.S. insured losses from Hurricane Wilma to between $8 billion and $12 billion.Its original estimate was between $6 billion and $10 billion, including 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 Oct. 24 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.RMS said it increased its estimate of insured losses resulting from Hurricane Wilma based on a further analysis of the wind speeds in the Miami metropolitan area and along the eastern coastline. RMS reconnaissance teams have reported extensive areas of roof damage indicative of wind speeds in excess of 90-100 mph across the area.”High-rise commercial buildings in Miami have also sustained significant damage to windows and cladding, contributing to the insured losses,” RMS noted. “Widespread power outages continue throughout the metropolitan area, as well as in parts of Naples and surrounding communities, which will likely propagate business interruption claims.”RMS says it will continue to monitor Wilma’s impact throughout the week.