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Relationship between residential insurance losses and wind conditions in Hurricane Andrew

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Abstract
An analysis of loss data for single family dwellings damaged by Hurricane Andrew is reported. A relationship is establiished between the average loss per building, expressed as a percentage of the insured value, and the wind speed measured by reconnaissance aircraft in a corresponding location in the storm. This relationship shows a very rapid increase in losses when the wind speed exceeds 70 m/s, corresponding to increases in roof and window damage which allowed wind and rain to enter buildings and cause extensive damage to their interiors and contents. It is suggested that improvements in roofing systems and protection of windows would greatly reduce insured losses in future hurricanes. The application of suitable deductibles is also suggested as a mechanism for reducing losses and increasing appreciation for wind-resistant construction by building owners.
Date
3/1993
Author(s)
Peter Sparks
Page(s)
111=
Keyword(s)
wind conditions; insurance


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