Hurricanes

2013 AND 2014 ATLANTIC HURRICANE SEASON

The 2013 Atlantic hurricane season produced 13 tropical storms, two of which became hurricanes, according to the National Oceanographic and Atmospheric Administration. Neither of these became major hurricanes, which is defined as a storm that reaches Category 3 or higher. 2013 was the first year with no major hurricanes since 1994, and it had the fewest number of hurricanes since 1982. Also, 2013 had no U.S. hurricanes that met PCS’s catastrophe threshold of at least $25 million in insured property losses. The first hurricane of the season, Humberto, reached hurricane force on September 11, but did not make landfall. It is topped only by 2002’s Hurricane Gustav as the latest forming first hurricane. Ingrid, the second 2013 hurricane, made landfall in Mexico on September 16. Together with Pacific Tropical Storm Manuel, it caused massive flooding and over 40 deaths. Andrea, an Atlantic tropical storm, made landfall in Florida on June 6 and caused one death. Losses from Andrea did not reach PCS’s catastrophe threshold.

Hurricane Arthur, the first hurricane of the 2014 Atlantic hurricane season, was also the first hurricane to make landfall on the U.S. mainland since Isaac in August, 2012, and the first Category 2 hurricane in the U.S. since Ike in 2008, according to the National Weather Service. Arthur became a hurricane on July 3 and made landfall over Shackleford Banks, between Cape Lookout and Beaufort, North Carolina. The storm weakened as it passed Cape Cod and New England. Widespread power outages were reported throughout coastal eastern North Carolina along with surge flooding up to 4 to 5 feet above normal.

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

The following chart from the Property Claim Services (PCS) unit of ISO, a Verisk Analytics company, ranks historic hurricanes based on their insured losses, adjusted for inflation. The chart beneath it, from AIR Worldwide Corporation, estimates insured property losses from notable hurricanes from past years, if they were to hit the nation again today with the same meteorological parameters.

 

ESTIMATED INSURED LOSSES FOR THE TOP TEN HISTORICAL HURRICANES BASED ON CURRENT EXPOSURES (1)

($ billions)

Rank Date Event Category Insured loss
(current exposures)
1 Sep. 18, 1926 Miami Hurricane 4 $125
2 Aug. 24, 1992 Hurricane Andrew 5 57
3 Sep. 17, 1947 1947 Fort Lauderdale Hurricane 4 53
4 Sep. 17, 1928 Great Okeechobee Hurricane 5 51
5 Aug. 29, 2005 Hurricane Katrina 3 (2) 45
6 Sep. 9, 1965 Hurricane Betsy 3 45
7 Sep. 9, 1900 Galveston Hurricane of 1900 4 41
8 Sep. 10, 1960 Hurricane Donna 4 35
9 Sep. 21, 1938 The Great New England Hurricane 3 33
10 Sep. 15, 1950 Hurricane Easy 3 23

(1) Modeled loss to property, contents, and business interruption and additional living expenses for residential, mobile home, commercial, and auto exposures as of December 31, 2011. Losses include demand surge.
(2) Refers to Katrina’s second landfall in Louisiana.

Source: AIR Worldwide Corporation.