Hurricane Nicholas Insured Losses Estimated at $950 Million

Hurricane from space

September 21, 2021

Hurricane from space

Insured losses resulting from Hurricane Nicholas should be close to $950 million, according to an estimate from catastrophe risk modeling firm Karen Clark & Company (KCC).

The estimate includes privately insured damage to residential, commercial, and industrial properties and automobiles, according to KCC.

Hurricane Nicholas made landfall September 14 as a Category 1 hurricane near Sargent Beach, Texas, with maximum sustained winds of 75 mph. The storm, which was originally expected to hit the Texas coast as a tropical storm, intensified more than anticipated prior to landfall and made an unexpected eastward shift of about 50 miles, according to KCC.

Shortly after landfall, Nicholas weakened to tropical storm strength as it moved further inland across eastern Texas, KCC said. By the evening of September 14, Nicholas had become a tropical depression and made an eastward turn over Louisiana before eventually dissipating.

According to KCC, Hurricane Nicholas' hurricane-force winds were isolated to coastal areas, and most of the storm's wind impacts were from tropical-storm-force winds. In the Bay City, Texas, area near the landfall point, there were reports of structural roof damage, damage to exterior walls, and siding damage. Further inland, most impacts included low-level wind damage with more significant damage from downed trees. Over 500,000 people were left without power as a result of high winds and downed trees knocking down power lines, KCC said.

Hurricane Nicholas was the 14th named storm and the 6th hurricane of the 2021 Atlantic hurricane season.

September 21, 2021