Two of the most devastating natural disasters of the year – the flooding in Louisiana, and a severe earthquake in central Italy – also reveal the immense costs of damages in uninsured regions.
The August edition of Impact Forecast’s Catastrophe Recap highlights the recent damage in the U.S. and Italy. Extreme rainfall led to massive flooding in the Gulf Coast, killing at least 13 people Total economic losses are expected to be up to $15 billion – but because of regionally low participation in the National Flood Insurance Program, more than 80% of damaged homes lack flood insurance.
The 6.2 magnitude earthquake that struck central Italy killed 296 people and hit Amatrice, Accumoli Pescara del Tronto, Arquata del Tronto, and Posta the hardest. Damages are estimated to reach billions of dollars, but low insurance penetration in the area means only a fraction of that overall cost will be covered.
As Steve Bowen, Impact Forecasting director pointed out, “As we enter the final third of 2016, roughly 75% of the year’s disaster losses have been uninsured.”
Other August disasters include:
- California wildfires, which destroyed hundreds of homes
- Continued flooding in India, bringing the death toll for the season to 600, and
- Hurricane Earl, which made landfall in Belize and Mexico, killing 67 and costing $110 million on $137 million in economic losses, respectively.
Click here to view the complete report.