Moody’s estimates that US private market insured losses on Debby will not exceed $1.5 billion

Moody’s RMS Event Response estimates that U.S. private market insured losses from Hurricane Debby will not exceed $1.5 billion, which represents insured losses associated with wind, storm surge and rainfall-induced flooding.

Moody’s also estimates that losses to the National Flood Insurance Program from the event will be less than $300 million.

The exposure informing the private market loss estimates was based on Moody’s RMS US Hurricane and US Private Flood databases. Exposure for the NFIP loss estimate was based on Moody’s view of current NFIP policy data published by FEMA.

Related: AccuWeather’s preliminary US damage and economic loss estimate is $28 billion

Moody’s RMS Event Response validated wind, storm surge, and inland flood reconstructions and loss estimates using public and private data, including wind station observations, river gauge water level data, web reconnaissance, aerial image analysis, and data products Moody’s.

Insured flood losses will be absorbed by the NFIP, particularly along the coastal portions of Florida, Georgia and the Carolinas, where underwriting rates are higher, as well as in the private market. However, Moody’s expects a considerable amount of uninsured flood losses from Debby, particularly in non-coastal areas where NFIP absorption is much lower.

Hurricane Debby made landfall as a Category 1 hurricane near Steinhatchee, Florida on August 5. Upon landfall, Debby had maximum sustained winds of 80 miles per hour, bringing hurricane-force winds, damaging storm surge and heavy rainfall to portions of Florida’s Big Bend. region and the Gulf Coast, according to Moody’s.

Related: Hurricane Debby in Florida already approaching 12,000

Coastal and inland areas of Georgia and the Carolinas experienced heavy rain with widespread inland flooding. After making a second U.S. landfall in South Carolina as a tropical storm on August 8, Debby moved northward and eventually became a post-tropical storm. During that time, several Mid-Atlantic and Northeast states were affected by rainfall-induced flooding and severe weather, including tornadoes, in some areas, according to Moody’s.