You're watching...
Insurance Information Institute President Dr. Bob Hartwig on the insurance costs from Tropical Storm Isaac.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- one and a half billion dollars.
That's the latest damage estimate from tropical storm -- Rampage in the Gulf Coast joining me now on the insurance nightmare headed our way.
Doctor Robert -- -- president of the Insurance Information Institute.
Bob thanks for joining us tonight.
You -- I think you and I.
Have been talking about.
Insurance coverage in hurricanes for seven years now.
And we just seeing these numbers get higher and higher in at the current estimates are right.
They're gonna be about the average of the annual flood losses that happen every year which are about two point seven billion.
What do you make of these a loss estimates do you think they're on target.
Well we have the an early modeling -- Right now about one and a half billion dollars we've got -- -- back in 2008 come across the -- Bay Area and that produced about 2.2 billion dollars.
-- -- The private insurers but I -- about the wind up with a billion or two more actually of the national flood insurance for a program a federal program.
Most people -- Portland area have coverage through the what program but we found out that complacent he might have -- and but not a lot of storms of Katrina some people ran out but covered after Katrina but unfortunately.
Have not kept that in light.
Both Bob Hope and that the Portland area as well as in -- that they're -- speak.
If those people are covered however if you've got wind damage that -- -- your standard -- all right Jared how big are your business all of.
But Bob that's -- headline.
If you think people got complacent -- they are we to have a lot of people paying out of pocket.
For the cost of this damage from this devastating.
Live and and and storm that's gonna be difficult for those people down there and now -- I guess we just can't reiterate enough almost everybody needs flood insurance coverage it's not if you just live in a coastal zone correct.
Absolutely.
Particularly in the media and it it did you have major rivers and -- every place and -- -- so low lying that the majority of people need to coverage.
And did you didn't -- at this -- Iraqi.
Need to run out buy it now because we're not over with -- Well -- have to do with thirty days before Raduyev actually -- you can't do it at the last second.
I wanted to show folks how this lines up with at damage from other storms Katrina.
Sixteen billion Hurricane -- back in 082 point 64 billion remember Ivan and -- 41 point 58 billion.
This doesn't really score with some of those it's certainly not as -- -- Katrina but the damage seems even more widespread how is this storm different from others.
Well it's very different from Katrina and in the following respect because we've not had a reaching up a -- -- -- that created tremendous business in eruption lot in the beauty of the world did that we couldn't get back and equity.
Form bonds that look like that would not happen this time around -- therefore we will not have the -- -- is an eruption lot that we saw last time.
Not that's good news don't look like this that that Wallach of global over right now.
Odd idiot or all of the data release candidate that it will be able to get -- beaten much more quickly that we thought that you're not much much more quickly Mike what expense.
Other PM one thing you can say to folks out there about what they should be doing tonight if -- in that.
Eye of the storm or or had just been passed by the storm what would you say about covering -- right.
I'd state they stayed right now and and start to make an assessment of the damage to your home at any damage to the best that you have.
And get ready to -- your -- bout with your with your insurance company either all the company directly or call your agent.
And companies will be swarming the area over the next several days.
That's going to be hard some people don't have telephone service.
I have to watch whereas those pop up agents say often -- is that the communities that are in.
OK well I think the cat -- will be in the areas that.
It -- they're allowed into the area.
Bob -- thanks for your help tonight appreciate.
