Hurricane Sandy, which is heading for the northeast coast of the US, has already caused up to $US2 billion ($1.93 billion) of property damage in Cuba.

Insured losses in the Bahamas are expected to be less than $US100 million ($96.54 million), with $US300 million ($289.62 million) losses in Jamaica.

Last night the category 1 hurricane was 635km east of Charleston, South Carolina, having intensified in the previous 24 hours. It is expected to turn west and make landfall along the New Jersey coastline tomorrow.

It is then expected to track north through Pennsylvania, New York and into Canada.

Sandy is likely to bring 101-202mm of rainfall and winds of up to 120kph. Storm surges of up to 3.3m will accompany it, posing a risk to the New York subway system.