Louisiana’s share of response costs to the August flooding could reach $81 million or more.
That’s the estimate lawmakers received on Sept. 16, in a first accounting by Gov. John Bel Edwards’ administration about the possible exposure for a state struggling with budget gaps.
While the federal government will pay for most of the response effort, Louisiana must cover a portion ranging from 10 percent to 50 percent depending on the type of aid.
The Edwards administration estimates Louisiana’s share of state agency response costs will reach $49 million, which the state must pay before the budget year ends June 30.
Transitional housing and other programs run by the Federal Emergency Management Agency are expected to cost Louisiana at least $31 million, though that bill can be paid in installments over years.
Catastrophe modeling firm AIR Worldwide has estimated that industry ground-up insurable losses — which include exposures eligible for coverage, regardless of whether they are actually insured, without any application of deductibles or limits — from the flooding in Louisiana caused by excessive rainfall during August 2016 will be between $8.5 billion and $11 billion.
Was this article valuable?
Here are more articles you may enjoy.
NY Lawmakers Agree to Governor’s Auto Insurance Reforms in New Budget 
AI Savings Misses ‘Should Be Making Executives Uncomfortable,’ Bain Says 
Georgia Brokers and Agents Alarmed After Court Ruling Expands Liability for Them 
Acrisure Goes After Former Owners of Businesses it Acquired for Leaving to Compete 
