(Image source from: Informa)

The winds and violent storms surges caused by Hurricane Florence will cost insurance companies between $1.7 billion and $4.6 billion, according to new estimates from Air Worldwide, a modeling firm.

Florence caused extensive devastation after it made landfall in North Carolina in the early hours of Friday morning.

Since then, the storm has deposited an immense amount of rain. More than 35 inches of rain was recorded in some areas.

"The heavy rainfall deposited by Florence has caused widespread riverine and flash flooding in many parts of North Carolina and South Carolina. Some dams and levees in the region are reportedly showing signs of distress," said Air Worldwide in its recent report.

The latest estimates for the cost to insurance companies are lower than early indications before the storm made landfall.

Related content: Hurricane Florence Could Cost Insurers Up to $4.6bn

Some people thought that insurers could end up paying up to $20bn but as the wind speeds eased, the risks changed. Insurance companies in the United States tend to pay out for wind-related damage, but flood damage tends to be excluded from many insurance policies.

Much of the damage caused by Florence has been flood-related.

"Flooding may worsen in many locations across South Carolina, North Carolina, and Virginia as precipitation continues to fall on the saturated ground and runoff drains slowly toward the coast," warned Air Worldwide on Tuesday.

By Sowmya Sangam