In the aftermath of Hurricane Harvey, the State of Texas is facing catastrophic housing, auto and business losses. Hurricane Harvey has already forced more than 30,000 people into shelters. Government officials estimate this figure could rise to 450,000, which is expected to be greater than following Hurricane Katrina. Texas is turning into an economic catastrophe — with damages likely to stretch into tens of billions of dollars and an unusually large share of victims lacking adequate insurance, according to estimates.
Reports are stating that less than one third of the losses will be insured. Most people with flood insurance buy policies backed by the federal government’s National Flood Insurance Program. As of April, less than one-sixth of homes in Houston’s Harris County had federal coverage, according to Aon. That would leave more than 1 million homes unprotected in the county. Coverage rates are similar in neighboring areas. Many cars also will be totaled. Read more