Wind damage from Hurricane Rita may cost insurers between $9bn and $18bn, according to catastrophe modeling firm Eqecat.
The estimate was made based on Rita hitting land between Port Arthur, Texas and Orange, Texas as a strong category 3 or weak category 4 storm.
A storm surge of up to 15 feet is expected in some areas and the National Weather Service is forecasting 10 to 30 inches of rain inland, which will exacerbate flooding, Eqecat said.
Rita also hit the Florida Keys before moving into the Gulf of Mexico and insured losses from that could range from $300m to $800m, the firm said.