Daunting Damage Estimates for Harvey

August 30, 2017


Make Mexico pay.


A preliminary insurance analysis released Tuesday by RMS (which advises hundreds of insurers and financial institutions on their financial exposure from natural and human-made disasters and catastrophes) puts the economic loss from Harvey as high as $90 billion.

Why it matters: Because up to 80 percent of the homes and businesses in Houston aren’t insured for flood damage (either privately or through federal flood insurance programs), the financial toll could be catastrophic. “The majority of these losses will be uninsured, given that private flood insurance is limited,” said Michael Young, who heads RMS’ climate risk modeling in the Americas. This will present a challenge to Congress and the Trump administration when it begins work on aid for the area.

RMS said Tuesday that hundreds of thousands of individual National Flood Insurance Program (NFIP) policies will almost certainly be affected by the devastation in Houston. It could be the largest event ever directed at the federal flood insurance program managed by FEMA, the agency in charge of the program, RMS said. The majority of the economic loss is likely to be in the metropolitan Houston area, where there are more than 7 million properties worth $1.5 trillion.

Harvey has broken all U.S. records for a single extreme-rainfall event, with cumulative amounts in some regions as high as 51 inches. As a result, RMS estimates the economic losses caused by a combination of wind, storm surge and inland flooding could be as high as $70-90 billion. But the losses could be even higher. RMS won’t issue its official insurance loss estimate for several weeks.

6 Responses to “Daunting Damage Estimates for Harvey”

  1. Andy Lee Robinson Says:

    $90 billion could decommission every coal power plant and create fields of solar arrays, wind turbines and batteries instead.
    Add another couple of hundred billion for Sandy and Katrina, and the transition to a decarbonized economy could have been decades ahead of now.

    If you think decarbonization is expensive, try denial.

    At least millions of jobs will be created, just to recover what was lost – if only lives were replaceable too.

    No chance now that Trump will get his stupid wall.

    • wpNSAlito Says:

      Complete decarbonization *today* won’t stop the changes that are already built in:
      – warmer arctic that broke the jet stream and leads to stalled weather
      – rain bombs
      – “instant droughts”
      – artesian sea-water flooding in Florida

      We’re trying to stop FF use on the promise that it won’t get *too much worse* decades from now. That’s an abstraction that humans are pretty bad at grasping.

  2. andrewfez Says:

    How much bail out money are those oil companies gonna get?

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