The cost of Hurricane Irene could run from $7 billion to $10 billion, making the storm one of the 10 most expensive disasters in U.S. history,
The New York Times reported Wednesday.
And insurance may not cover the bulk of the damage, which was caused not by wind but flooding, which is not included in many standard policies.
In past storms, insurers have typically covered about half of the total losses, but in Irene’s case, they may end up paying less than 40 percent of the cost, the Times said, citing an analysis by the Kinetic Analysis Corp.
Without insurances payouts, many homeowners may not be able to rebuild, said Jan Vermeiren, chief executive of Kinetic Analysis.
“Especially now that the economy is tight, and people don’t have money sitting around, local governments are broke, and maybe people can’t even get loans from the banks,” Vermeiren told the Times.
In Connecticut alone, Connecticut Light & Power Co. expects the cost of restoring power in the aftermath of Tropical Storm Irene to be about $75 million, the Hartford Courant reported, citing the utility’s president.
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