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Insurance Information Institute President Robert Hartwig on Hurricane Sandy’s financial impact.
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See economic impact of hurricane sandy mesa -- surpass that of hurricane Andrew way back in 1992 which still now.
Was consider the costliest disaster in US history about thirty billion dollars in damages.
Here with what homeowners and renters need to know now I'm joined by Robert hurt wade president of the Insurance Information Institute -- somebody had been talking about this kind of thing with for a long time -- first of all OK so we have estimates out there.
Everywhere from ten -- to now twenty billion dollars -- possible damages do you agree where do you think it'll come and look.
And how will it rank right certainly those -- the economic classes the insured losses will be somewhat less than that you know with Hurricane Irene last year which is perhaps a lesser storm four point three billion that was number ten on the all time list.
A right now the estimates are this could come up -- a little bit more than that so we could wind up with perhaps number 78 or nine and the all time list in terms of costliest hurricanes.
Now as I've talked to people in the insurance industry over the years this was there big nightmare.
That a big storm would come to the New York City area and slam into it.
High density population expensive properties you name -- we got at all and I a lot of coastal area to be hurt what do you say.
Well that's right we we got at all this time and that we were only saved by the fact that this was not a cat three storm.
That's the one area where could have been a lot worse in boiling it down -- different well the difference would have been tens of billions of dollars of difference a cat three storm could have easily produce thirty to forty billion dollars in lost.
On this full -- produce less than half that probably less than a third of that so that's the relative good news but there's still lot of damage out there over a very widespread area.
You mentioned a cat three hurricane with packed winds of about a 130 miles per hour yes we talked about nine indeed possibly nine -- five.
In some places tonight.
It's certainly not over the next few days it will lessen in strength.
As you look at this do you think most of the damage is going to be due to wind due to rain and flooding what do you see coming.
Like a combination of damage associated with winds that are sustained over a large area for a period of time but also coastal storm surge.
Which is something that would be covered on your National Flood Insurance Program policy.
All right so.
He clearly have to to a bot you're out policy from the federal government which may be.
Still do you buy your local insurance agency can't do that thirty days in travel for the event occurs you can't walk in at the last month minute and buyback that's.
Price but Irene was a wake up call last year and in fact we found that there was a surge in purchases of flood coverage in the wake of Irene and the one silver lining from Irene is that people were better protected.
Than they would have otherwise spent.
And tonight if you're sitting here watching.
This shelling are wondering what to do go find your insurance agents phone number so tomorrow when you look wake up and you start surveying the damage.
You may be all that's right him a call and those claims and get adjusted right away.
Fingers crossed there's a lot of people out there to talk to we're ready we're ready RA you say you're ready we'll be watching that's for sure Bob thanks for coming --
