Derecho could be one of Canada’s costliest convective storms

A derecho that traveled 621 miles across southern Canada, hitting major metropolitan areas, could be one of the costliest insured convective storm events on record for the insurance industry in Canada, Aon said. PLC on Friday in its latest report on the disaster.

The May 21 storm, which generated extraordinary straight-line wind damage, could also be one of the costliest insured losses ever in Canada, according to preliminary estimates, Aon said in the report.

The derecho killed at least 10 people and caused extensive damage in parts of Toronto, Ottawa, Montreal and Quebec, Aon said.

Electricity services for at least 1 million customers in southern Canada were lost as the storms passed.

In Ontario, large electrical transmission towers in Ottawa were toppled during the derecho, and as many as 1,000 utility poles were toppled across the province.

Widespread damage was reported to homes and other structures, vehicles and farms in areas affected by the storm.

A spokesperson for the Insurance Bureau of Canada said via email that an initial estimate of insured losses will be provided within 45 days.

Catastrophe Indices and Quantification Inc. called the storm a catastrophe. Its disaster declaration threshold is C$30 million ($24 million).

“However, it will be much more than $30 million,” the Bureau of Insurance spokesperson said.

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