Insured losses from Hurricane Melissa to reach $2.4B: KCC

Privately insured losses from Hurricane Melissa, which hit Jamaica and Cuba last week, will be about $2.4 billion, catastrophe modeling firm Karen Clark & Co. estimated Thursday.

The storm made landfall in Jamaica as a Category 5 hurricane on Oct. 28 and in Cuba as a Category 3 on Oct. 29.

The most common cause of damage in Jamaica was to building roofs, KCC said. The reinforced masonry buildings, which are common on the island, largely withstood the winds but the lightweight metal roofs were more vulnerable.

Buildings in the towns of Black River and Montego Bay in the west of Jamaica sustained significant damage, the report said.

“While this storm devastated parts of Jamaica and Cuba, the insured impact will be significantly less than the total economic impact due to low insurance penetration rates,” KCC said.