Harvey brings 'hell' to Texas
Hurricane Harvey: 70% of home damage costs aren't covered by insurance
The latest Hurricane Harvey cost estimates show about 70% of home damages caused by flooding won't be covered by insurance.
Preliminary data predicts that between $25 billion and $37 billion worth of flood loss has hit homes across southeast Texas and southwest Louisiana. Only about $6.5 billion to $9.5 billion of those costs will be covered by insurers.
Standard homeowners insurance policies cover damage from the high winds that are associated with a hurricane, but they don't cover damage from rain or flood waters. In the case of Harvey, many of the damaged homes weren't in high risk flood zones.
At first glance, the total loss estimate appears basically in line with the $40 billion worst-case scenario prediction CoreLogic made on August 25, hours before Harvey made landfall.
But that model assumed Harvey would hit the Texas coast as a Category 3 hurricane and eviscerate more than 200,000 homes.
It also provided the level of storm surge risk -- flooding due to rising water levels, not precipitation -- and the reconstruction costs, but it excluded wind or flash flooding damages.
Harvey also took an unexpected course. It slammed Rockport, Texas as a Category 4 storm when it came ashore last Friday -- but was downgraded to a tropical storm by mid-Saturday. Once it hit Houston, Harvey refused to move. It dumped an unprecedented 50-plus inches of rain on some areas of the city -- causing devastating floods -- before moving on to the Louisiana coast.
CoreLogic also said Friday that wind damage likely caused another $1 billion to $2 billion -- but nearly all of that will be covered by insurers.
Where the fund is going
Reach Out America
Habitat for Humanity
Houston Humane Society
Portlight Inclusive Disaster Strategies