Verisk’s Extreme Events Solutions team expects Hurricane Beryl to cause insured losses to onshore property in the United States of between $2 billion and $3 billion.

Hurricane Beryl, which crossed the Windward Islands as a Category 4 hurricane by July 1 and became the oldest Category 5 hurricane on record in the Atlantic, reached peak intensity on July 2 with sustained winds of 165 mph.

Despite initially favorable conditions for further intensification, Beryl’s structural flaws limited its strength to a Category 1 hurricane upon landfall near Matagorda Bay, Texas, around 4 a.m. CDT on July 8. The storm made landfall with maximum sustained winds of 80 mph and a central pressure of 979 millibars before progressing inland.

Verisk noted that Beryl caused widespread power outages across Texas, affecting nearly three million households, with more than 2.2 million households affected in Harris County alone. It noted that the power outages could result in significant insurance claims related to food spoilage, mold, additional living expenses and business interruption.

Meanwhile, heavy rains caused flooding across roads and homes in the Houston area and parts of western Louisiana. Wind damage included broken windows and damaged roofs, particularly affecting apartment complexes and condos.

But Verisk’s forecast does not include many potential losses, such as excess impacts from outright atypical power outages, losses from storms, claims paid by the National Flood Insurance Program, and losses exacerbated by litigation, fraudulent waiver of benefits, or social inflation.

Storm surge losses on wind-only policies due to government intervention, flooding from rainfall, inland marine losses, ocean cargo losses, and recreational boat losses are also excluded.

In addition, uninsured property damage, infrastructure losses, non-contractual liabilities, damages resulting from hazardous waste cleanup, vandalism, or civil disturbances are not included. Losses resulting from damage to existing defenses such as levees, loss adjustment expenses, and other atypical losses including storm surges, marine and non-U.S. property losses are also excluded.

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