Storms’ Toll Takes on Many Forms

The industry group says at least $553.1 million in insured losses were left by remnants of Hurricane Ike, which swept through the state on Sept. 14.

The economic crisis with the failures of Lehman Brothers, then AIG, and other financial institutions has been described as a cloud hovering over the country that has caused panic and anxiety about the future. This economic storm will be remembered in 2008 as one of the most serious since the Great Depression.

But other “physical” weather-related storms have hit the Midwest in 2008 and taken a toll too.

Ohio Hit

According to one Associated Press story, Ohio insurers say losses from September 2008’s windstorm will rival those from the state’s costliest natural disaster in recent decades.

The 1974 tornado that devastated the western Ohio city of Xenia caused about $600 million in damage, according to the Ohio Insurance Institute. The industry group says at least $553.1 million in insured losses were left by remnants of Hurricane Ike, which swept through the state on Sept. 14.

The institute says the windstorm is generating a record number of claims from Ohio home, vehicle and business owners. Twenty-four insurance companies that write policies in the state report they’ve received roughly 132,000 claims so far.

Missouri Flooding

The devastation from Hurricane Ike also hit Missouri. Gov. Matt Blunt wants federal disaster aid for the flooding from Hurricane Ike. The governor’s office estimated that flooding caused $11.8 million in damage to public infrastructure in parts of Missouri.

Iowa Buy Out

In Iowa, state officials say nearly three dozen Iowa communities are vying for about $200 million in federal aid to buy out homes in flood-prone areas have until early next year to make formal applications.

Heavily damaged Cedar Rapids has the greatest number of properties that could benefit from federal mitigation. The city is seeking nearly $84 million to buy out 1,126 homes. Iowa City, also with significant losses, is seeking $63 million for 247 homes.

Illinois and Indiana were hard hit in late September due to Ike’s aftermath and the claims numbers from companies and federal agencies are still being tallied.

Bottom line to all of this is that storms have brewed black and forbidding, economically on Wall Street as well with wind and flooding on Main Street. It may be that 2008 will be remembered for all the turmoil and uncertainty felt in many markets — insurance, investment and property — and not one of us will be able to easily forget it.

Topics Catastrophe Windstorm Flood Ohio Hurricane Iowa Missouri