Catastrophe risk modeler Risk Modeler Solutions (RMS) hasweighed in on how much Hurricane Irene will cost the P&Cinsurance industry. The Newark, Calif.-based modeler says theinsured losses from Hurricane Irene in the United States andCaribbean will fall between $2.5 billion and $5.5 billion.

Specifically for the U.S., RMS says insured losses will bebetween $2 billion and $4.5 billion. Modeler Eqecat believes that U.S. insured losses from Irene will rangebetween $1.5 billion and $2.8 billion. AIR Worldwide pegged U.S. insured losses at $3 billion to $6billion.

Add insured losses from the storm's damage in the Caribbean andthe range climbs to between $1.8 billion and $3.4 billion,according to Eqecat. AIR added an insured loss estimate for theCaribbean of between $500 million and $1.1 billion.

“Our estimate range reflects some uncertainty, including thedefinition of hurricane versus non-hurricane deductibles forindividual states, and the uncertainty surrounding losses fromdamage caused by tropical storm winds,” said Michael Kistler,director of model solutions at RMS, in a statement. “During Irene,a large swath of tropical-force and low hurricane-force winds sweptacross a large area of exposure causing widespread, low-levels ofdamage.”

RMS says it has seen a small number of roof-detachment reportsbut generally the damage was less severe. Plus, power outages causeby Irene played a factor in estimating insured loss—whichvaries between modelers.

Photo: Jocelyn Augustino/FEMA