AIR Worldwide has estimated that insured losses in the Caribbean from Hurricane Irene will be between $500 million and $1.1 billion. AIR said it “expects the Bahamas will account for more than 60 percent of the insured loss—between $300 million and $700 million.”
The total estimate “includes wind and precipitation-induced flood damage to insured onshore residential, commercial and industrial properties (and their contents), automobiles, and business interruption losses in the Bahamas, Puerto Rico, Dominican Republic, Turks and Caicos, and other Caribbean territories,” AIR explained.
The bulletin also noted that Irene’s passage through the northwestern Bahamas has “caused significant wind and flood damage to Abaco, Cat, and Eleuthera islands. There are reports of downed trees and significant roof damage throughout the region, but with severe disruptions to telecommunications and power networks, damage reports have been sparse thus far. Up to one foot of total rainfall accumulation was expected in parts of the country, and winds exceeding 130 mph [208 km/h] have been recorded.
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AIR Worldwide scientist Scott Stransky noted that the hurricane had fortunately “tracked east of densely populated New Providence Island and Grand Bahama Island, subjecting them to only tropical storm force winds.”
Officials on the islands report limited impact on popular tourist resorts, and said they expect them to resume operations soon. In the capital city of Nassau, located on New Providence Island and home to nearly a quarter million people, trees were downed, streets were flooded, and debris was strewn throughout. The Straw Market in downtown Nassau, a popular tourist shopping center located in a metal-framed canvas tent, was destroyed.
According to AIR’s analysis, the Bahamas were “among the first Caribbean territories to adopt building codes, which are very stringent and highly enforced. This will help limit severe structural damage to a certain extent.
