Loss estimates from Hurricane Helene, which crossed the Florida coastline last week, are expected to climb as the event brings widespread catastrophic flooding. 

The hurricane hit Florida’s Big Bend region at 11.10pm Thursday local time at category four intensity, with winds reaching 140mph, making it one of the most powerful to strike the US. 

AM Best says in a September 27 report that insured losses are likely to be more severe than the $US2.5-4 billion ($3.6-5.8 billion) estimated from Hurricane Idalia in August last year and could reach around $US5 billion ($7.2 billion). 

“Helene’s strong wind fields stretched over a much wider area, accompanied by coastal storm surge and inland flooding,” it says.  

“Primary insurers are likely to bear the brunt of the losses given that attachment points have increased over the last couple of years. Losses could creep into reinsurance layers depending upon the ultimate impact of the storm.” 

Flood losses will affect the National Flood Insurance Program, which is expected to be extended before its September 30 expiration, as well as the appetite of those carriers providing flood coverage in the market, AM Best says. 

US media have reported that there have been more than 90 deaths across North Carolina, South Carolina, Georgia, Florida, Tennessee and Virginia, and millions have lost power. 

Verisk says the hurricane made landfall near Perry, southeast of Florida state capital Tallahassee, which was largely spared the worst wind impacts. Keaton Beach was hard hit, and a storm surge left significant damage along Florida’s west coast. 

In North Carolina, communities along the Blue Ridge mountains saw some of the highest rainfall totals with Hendersonville receiving 22 inches. The city of Asheville received 14 inches. 

This year’s hurricane season started with Beryl becoming the earliest Atlantic category five storm on record. It was followed by Debby and Ernesto in early and mid-August, with activity then entering a lull.