Gustav May Be Fourth Costliest Storm, In Terms of Property Damage
Thursday, September 04, 2008
Both President Bush and state officials have said that it is too early to truly assess the damage caused by Hurricane Gustav. According to a Bloomberg report earlier today though, the Category 2 storm may trigger insurance claims as high as $10 billion, based on early assessments from firms that specialize in catastrophe estimates, making it potentially the fourth costliest U.S. storm on record.
The hurricane lost power as it headed for shore yesterday, keeping insured losses on land – including damage to homes, personal property, businesses and government structures – between $3 billion and $7 billion, according to preliminary estimates from Newark, California-based Risk Management Solutions Inc., Bloomberg reported. The appraisal firm estimates an additional $1 billion to $3 billion in off-shore oil-drilling damage, but even so, that total is still far less than Katrina's record damages of $41.1 billion in 2005.
Estimates on insured losses, however, understate actual costs because the figures don't include damage to uninsured property or destruction caused by actions excluded from some policies, such as flooding. Category 2 winds like those of Gustav can wreak havoc on homes, causing extensive damage to roofs, doors, and windows, the National Hurricane Center said. Following the costly toll of Hurricane Katrina, home insurance rates along the Gulf Coast have as much as doubled, according to Dan Gretch, reporting for Marketplace public radio. Many homeowners couldn't afford the new premiums and had to pass on protecting their property. As Gretch said, “once the winds die down, it could leave some unlucky homeowners holding the bag.”
According to the National Hurricane Center's Web site, Gustav's eye was 75 miles south of New Orleans and about 15 miles south-southeast of Cocodrie, Louisiana along the Gulf Coast when it struck land at about 9 a.m. local time on Monday. The system, which was moving northwest at 16 mph, weakened to a Category 2, with maximum sustained winds of about 110 mph, the center said. By comparison, Katrina was a Category 3 storm at landfall, with 120 mph winds.
Louisiana in the Aftermath
While the hurricane delivered only a glancing blow to the below-sea-level city of New Orleans, which was ravaged by the catastrophic flooding of Katrina three years ago, the rest of the state did not survive the storm without damage. Gustav devastated parts of Cajun country, destroying roofs and entire homes, and flooding parts of the mostly rural, low-lying parishes across the state's southeastern and central coast.
Louisiana Governor Bobby Jindal said he had received reports of widespread damage across Terrebonne, Lafourche, and St. Mary parishes, all near where the eye of the storm hit. Jindal said that Terrebonne Parish appears to be the hardest hit from Gustav's initial blow. Local officials are reporting blown out storefronts and devastation to homes, and are asking the state for assistance.
Homes and businesses in the surrounding Morgan City, Houma, and New Iberia areas of Louisiana also took a beating, according to early reports. In Montegut, a small Terrebonne Parish town south of Houma, even homes built up on pilings to avoid flooding were not spared by the shattering wind that tore through the land.
Gustav's Damage in Mississippi
As the tail-end of Gustav moved inland late yesterday, Mississippi Governor Haley Barbour told reporters that officials were still assessing the extent of damage in the narrowly coastal state. Barbour said there were several homes in Hancock County, especially in the Pearlington area, where “crews have only gone in by boat at this stage.”
Mississippi Senator Roger Wicker said there was a palpable sense of relief in Jackson County, and in Harrison County there was a definite feeling that “we dodged the bullet.” Wicker said that clearly, Hancock County is the area in Mississippi that took the brunt of the storm's wrath. About 100 homes were reported to be flooded in Pearlington yesterday, an area in Hancock County hard hit by Hurricane Katrina three years ago.
Residents in the Jourdan River Shores community also reported rising waters, as rescue workers were called in to pull homeowners from flooding conditions. Bay St. Louis officials report downed trees and extensive roof damage from Gustav's winds, which reached up to 70 miles per hour in some places in Mississippi.
President George W. Bush has declared a state of emergency in Louisiana and Mississippi in the wake of Hurricane Gustav. Weather watchdogs are already keeping an eye on two more storms, Hurricanes Hanna and Ike, which are threatening the Florida and eastern seaboards.
The hurricane lost power as it headed for shore yesterday, keeping insured losses on land – including damage to homes, personal property, businesses and government structures – between $3 billion and $7 billion, according to preliminary estimates from Newark, California-based Risk Management Solutions Inc., Bloomberg reported. The appraisal firm estimates an additional $1 billion to $3 billion in off-shore oil-drilling damage, but even so, that total is still far less than Katrina's record damages of $41.1 billion in 2005.
Estimates on insured losses, however, understate actual costs because the figures don't include damage to uninsured property or destruction caused by actions excluded from some policies, such as flooding. Category 2 winds like those of Gustav can wreak havoc on homes, causing extensive damage to roofs, doors, and windows, the National Hurricane Center said. Following the costly toll of Hurricane Katrina, home insurance rates along the Gulf Coast have as much as doubled, according to Dan Gretch, reporting for Marketplace public radio. Many homeowners couldn't afford the new premiums and had to pass on protecting their property. As Gretch said, “once the winds die down, it could leave some unlucky homeowners holding the bag.”
According to the National Hurricane Center's Web site, Gustav's eye was 75 miles south of New Orleans and about 15 miles south-southeast of Cocodrie, Louisiana along the Gulf Coast when it struck land at about 9 a.m. local time on Monday. The system, which was moving northwest at 16 mph, weakened to a Category 2, with maximum sustained winds of about 110 mph, the center said. By comparison, Katrina was a Category 3 storm at landfall, with 120 mph winds.
Louisiana in the Aftermath
While the hurricane delivered only a glancing blow to the below-sea-level city of New Orleans, which was ravaged by the catastrophic flooding of Katrina three years ago, the rest of the state did not survive the storm without damage. Gustav devastated parts of Cajun country, destroying roofs and entire homes, and flooding parts of the mostly rural, low-lying parishes across the state's southeastern and central coast.
Louisiana Governor Bobby Jindal said he had received reports of widespread damage across Terrebonne, Lafourche, and St. Mary parishes, all near where the eye of the storm hit. Jindal said that Terrebonne Parish appears to be the hardest hit from Gustav's initial blow. Local officials are reporting blown out storefronts and devastation to homes, and are asking the state for assistance.
Homes and businesses in the surrounding Morgan City, Houma, and New Iberia areas of Louisiana also took a beating, according to early reports. In Montegut, a small Terrebonne Parish town south of Houma, even homes built up on pilings to avoid flooding were not spared by the shattering wind that tore through the land.
Gustav's Damage in Mississippi
As the tail-end of Gustav moved inland late yesterday, Mississippi Governor Haley Barbour told reporters that officials were still assessing the extent of damage in the narrowly coastal state. Barbour said there were several homes in Hancock County, especially in the Pearlington area, where “crews have only gone in by boat at this stage.”
Mississippi Senator Roger Wicker said there was a palpable sense of relief in Jackson County, and in Harrison County there was a definite feeling that “we dodged the bullet.” Wicker said that clearly, Hancock County is the area in Mississippi that took the brunt of the storm's wrath. About 100 homes were reported to be flooded in Pearlington yesterday, an area in Hancock County hard hit by Hurricane Katrina three years ago.
Residents in the Jourdan River Shores community also reported rising waters, as rescue workers were called in to pull homeowners from flooding conditions. Bay St. Louis officials report downed trees and extensive roof damage from Gustav's winds, which reached up to 70 miles per hour in some places in Mississippi.
President George W. Bush has declared a state of emergency in Louisiana and Mississippi in the wake of Hurricane Gustav. Weather watchdogs are already keeping an eye on two more storms, Hurricanes Hanna and Ike, which are threatening the Florida and eastern seaboards.
