Hurricane Recovery Costs on the Rise

Expected Hurricanes Cause Unexpected Damage

Tracking a hurricane for days before its arrival may give some preparation time to those within its path, but it is never enough. The location of hurricane landfall is as unpredictable as the storm itself. The surge of seawater slams into coastal towns, sweeping away cars and leveling buildings. A slow-moving hurricane floods buildings, streets, and rivers with torrential rainfall. With winds that bend and snap trees, rip off roofs, and topple structures, hurricanes devastate lives and businesses every year, and hurricane recovery costs are on the rise.

Hurricane Recovery Costs Rise Yearly

According to the Office for Coastal Management, hurricanes’ destruction tops any other recorded weather disasters in the United States. The Congressional Budget Office estimates annual economic losses due to hurricanes each year. The $54 billion estimated costs for 2019 included the impact to businesses, households, and the public sector. Hurricane recovery costs are expected to climb higher each year.

The Economic Impact is Difficult to Measure

The actual cost of hurricane recovery is difficult to measure, as it may take years for a community to fully recover. The immediate expenses may be from a family’s need for temporary shelter or a business’s need for an alternate location. Replacement of personal possessions, business equipment, and automobiles constitute a significant cost.

Other recovery costs include:

  • Clean Up

Although local, state, and federal governments contribute toward general clean up, homeowners and business owners are in large part responsible for tree removal and collection of debris on their properties.

  • Water Damage

Wind and wind-driven rain can damage buildings, even if the structures themselves are not compromised. Careful repairs must be made in a timely manner to reduce the possibility of subsequent mold damage occurring.

  • Rebuilding Structures

The damage to homes, businesses, and public buildings often require significant repair or rebuilding. This cost is directly tied to the cost of labor and supplies, both of which are on the rise. In July of 2020, the cost of construction grade lumber jumped significantly due to high demand and short supply.

Because of these and other costs, an essential part of hurricane preparedness is obtaining insurance coverage that will help make it possible to recover from the disaster.

About AmSuisse Insurance Agency

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.