Hurricane Sandy Victims: Here's What 'Aid' Irma and Harvey Homeowners Should Expect

Remigio Civitarese
Settembre 11, 2017

However, what happens when a second natural catastrophe similar in powers hit the same country after only two weeks from the first one?

At the end of August, Hurricane Harvey hit parts of Texas with utmost rage decimating local communities and valuable properties.

Now, Hurricane Irma is tearing through Florida. However, the uninsured areas will support a bigger bulk of a total between $70 billion and $90 billion.

As the director of the Institute of insurance studies center of the hurricanes of the Florida International University, Shahid Hamid tests the companies to assess whether their financial situation is strong enough to cope with disasters of this magnitude.

AIR Worldwide, another so-called catastrophe modeling firm, says Irma might cause anywhere between $15 billion and $50 billion worth of insured losses in the United States. The Caribbean Islands might round up the financial damages to $65 billion.

As Hurricane Irma barrels toward the USA mainland, the eye of the storm reminds Florida and the nation of uncertainty about the extent of the storm's devastation. The federal flood-insurance program, which is about $25 billion in debt, is up for reauthorization this year. That assumed the storm maintains its intensity as it moves north.

Florida, a state prone to hurricanes, has seen considerable changes in its insurance market since Hurricane Andrew, which in 1992 dollars tore a $27 billion path through southern Florida.

Irma was initially expected to hit Miami directly, but it shifted west. Forecasts show the storm moving up Florida's west coast on Sunday and Monday, hitting Naples and Fort Meyers before reaching Tampa.

However, property damage is not the only factor that impacts the national economy. Harvey has already hurt the job market, and Irma could exacerbate the problem. Organizers say many lost their homes and fell victim to NFIP fraud and abuse, despite paying flood insurance premiums for decades.

In the end, both natural disasters will generate a heavy economic toll.

"U.S. economic growth may briefly slow in the third quarter because of Harvey and Irma, but should bounce back later this year and into 2018", he said in a note to clients Friday. "Having said that, the national economy appears to remain on track", he said in a statement last week.

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