In the aftermath of Hurricane Hilary’s unprecedented impact on the western United States and Mexico, the region is grappling with significant economic and insured losses that could potentially soar into the hundreds of millions of dollars, according to Aon’s latest weekly cat report.
Hurricane Hilary, initially forming west of Central America in the Pacific Ocean on August 13, rapidly intensified into a category 4 storm with maximum sustained winds of 144 mph by early August 18.
As it moved towards the Baja California peninsula and southern California, the storm’s unique trajectory, influenced by a strong subtropical ridge and an upper-level low, led to heavy rainfall and historic levels of precipitation. This caused widespread flooding, mudslides, and property damage, despite largely affecting sparsely populated areas.
The catastrophic flooding and torrential downpours triggered by Hurricane Hilary led to substantial damage to roads, bridges, vehicles, homes, and businesses, creating a grim financial toll.
While the bulk of the destruction occurred in less densely inhabited regions, densely populated areas of southern California also reported substantial losses, emphasizing the far-reaching financial impact of the storm.
In Mexico, the storm’s heavy rainfall resulted in flooding that caused significant damage to properties and infrastructure. Tragically, lives were lost due to floodwaters, including three individuals in the Baja California peninsula. More than 500 people sought temporary shelter, and many were rescued from vehicles amidst the rising waters.
In the United States, particularly in California, the impact of flooding and mudslides was felt across several counties, including San Bernardino, San Diego, Los Angeles, Riverside, Ventura and Palm Springs.
Palm Springs and Death Valley remarkably experienced nearly a year’s worth of rainfall in just one day. Beyond California’s borders, states like Nevada, Idaho, Oregon, and Montana also suffered from the deluge brought on by Hurricane Hilary.
Evacuations were carried out, power was disrupted for around 57,000 customers, and numerous cities experienced record-breaking rainfall. Notably, Cathedral City in Riverside County saw the dramatic rescue of 40 individuals.
Though no fatalities have been reported as a direct result of the storm, the economic repercussions are undeniable. The extent of damage to property, infrastructure, and livelihoods has prompted concerns that total economic losses may escalate into the millions of USD, considering the widespread devastation caused across the affected regions, the report noted.
Additionally, insured losses are also anticipated to contribute significantly to the financial toll, with insurance claims expected to surge in the aftermath of the disaster. Authorities and local agencies are actively engaged in assessing the scope of the damage and mobilising resources for recovery efforts.
As the affected areas begin the arduous process of cleanup, repair, and rebuilding, the true extent of the financial toll left by Hurricane Hilary is becoming clearer. With insured losses and economic damages projected to be considerable, the region is facing a long road to recovery.