Hurricane in Bermuda May Cost Insurers $400 Million

Hurricane Gonzalo, which hit Bermuda last week, will probably cost insurers $200 million to $400 million after damaging roofs and boats yet leaving resorts mostly unharmed, modeling firm AIR Worldwide said.

The storm, which struck Oct. 17 with winds gusting to 113 miles (182 kilometers) per hour, harmed mostly older buildings, AIR Worldwide said today in a statement. The category 3 hurricane weakened to a category 2 when the center passed over the island, according to the report. Tropical Storm Fay had struck Bermuda earlier in the month.

“It is likely that Fay’s passage reduced the sea surface temperatures around Bermuda, allowing Gonzalo to be just slightly weaker than it might have been otherwise,” Scott Stransky, manager and principal scientist at AIR Worldwide, said in the statement.

Bermuda’s “strictly enforced” building codes contributed to fewer losses than previous events, AIR Worldwide said. Loss estimates are compiled by using data from the National Hurricane Center, hurricane hunter aircraft and wind observations in Bermuda. The risk modeling firm is owned by Jersey City, New Jersey-based Verisk Analytics Inc.

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