2006 Hurricane Risk Case Study Essay

Who pays for all these damages? People who live in hurricane prone areas obviously have insurance to fall back on when these disasters strike. It turns out that insurance companies also have insurance for instances like this. When insurance companies get stuck paying out large sums of money to a lot of people, they occasionally need a little help and

When we hear about hurricanes on the news or how one might be closing in on where we live we mostly think of how we are going to protect our self. However, there is one thing that I think most people do not stop and ponder, which is how does a hurricane even get forecast? From the direction it is going to be headed, to how it is categorized. The group that preforms all forecasting for tropical cyclone activity is the National Hurricane Center (NHC) and they cover the Atlantic and Eastern Pacific basins throughout North America. To start it begins with visual observations of the hurricane using reconnaissance airplanes, satellites, ships, buoys, radars, and an assortment of land-based equipment. Likewise, most of the storm’s projected path and

Hurricane Katrina was not New Orleans’ first time being hit with devastating effects from a hurricane. New Orleans has been struck by hurricanes six times over the past century. In 1915 was a category 4 hurricane, it killed 275 people and caused millions of dollars’ worth of damage. 1940, 1947, 1965, 1969 and again in 2005. The Mayor of New Orleans issued a first ever mandatory evacuation. With New Orleans being hit multiple times over the past decade surprised me that serious precautions weren’t taken previously, such as better levees or seawalls. Living in a place below sea level, one would think that the levees and seawalls would be stronger, but the levees collapsed below design height during the Katrina storm .

In the year 2005, New Orleans was hit by a major natural disaster that took lives and destroyed the homes of many civilians. This wrath of Mother Nature came to be known as Hurricane Katrina, a category 5 hurricane with gusts peaking at 174/mph according to the Safir- Simpson wind scale (SSHS). The mix of both poor geographical characteristics and scientific accuracy resulted in damage costs accumulating up to $108 billion (2005 USD). The high damage costs made this natural disaster to be ranked as the costliest storm ever to hit the United States of America (Blake et al. 2011). The entirety of the damage is exemplified by the plethora of housing units dismembered, the annihilation of several bridges and buildings, which led to petroleum and

During the 1960’s the United States suffered from several natural disasters, including hurricanes and earthquakes, which caused hundreds of millions of dollars in damage. (Bullock & Coppola, 2014) The normal response to these types of disasters was to pass impromptu legislation for funds. After Hurricane Betsy in 1965, the idea of disaster insurance that could help with future disasters and also limit the reliance on government assistance was discussed. Flood insurance was largely unavailable on normal homeowner policies and if it was available, it was too costly (Bullock & Coppola, 2014). According to Fier, Gatzlaff, and Pooser (2014), “private insurers did not view flood as an insurable peril” (p.118). The main reasons for this being

Hurricanes are one of nature’s most natural occurrences and intense phenomenal storms. Yet, as phenomenal as they are, they are still one of the deadliest and disastrous natural occurrences that continue to plague costal residents with fears of their homes being destroyed, their towns wiped out, and loved ones either disappearing or dying.

Our team of meteorologists and seismologists from Purdue university have realised that Illinois is at a high risk for hurricanes. We should worry about hurricanes because of the aftereffects like rain and high winds can affect states that are farther away from the coast. The probability of a hurricane in Illinois is very low however there was a hurricane in florida that just hit about a week ago. One reason this issue needs to be addressed is how and where these storms are formed. Hurricanes occur in areas that have intensely low pressure, and are mainly fueled by water vapor from the ocean. According to Weather Questions.com, “ The low pressure causes wind to begin to spiral inward toward the center of the low. These winds help to evaporate

A list of items you may need to prepare for a hurricane. You need water, gas, food, sandbags, generators, radio, flashlight, first aid kit, manual can opener, cell phone, prescription medications, glasses, cash, important family documents, sturdy shoes, and pet supplies. This information came from CBS news.

Hurricanes are large storms with heavy rain and high winds. Hurricanes are organized by categories, with five being the strongest wind, and heaviest rain. One being not as bad but high winds and a good amount of rain. Hurricanes have other names such as cyclones. Hurricanes have caused many problems in history. Hurricane can be a catastrophic loss. First off Hurricanes cause economic problems. Definitely, Hurricanes cause environmental crisis. Obviously Hurricanes have caused many deaths.

In my opinion, the low-and middle-income homeowners affected by Hurricane Sandy should receive subsidized coastal flood insurance so they can continue to live along the shore. People deserve to receive this flood insurance because according to Ed Beeson and Erin O'Neill (2013), before the Hurricane Sandy occurred, The Federal Emergency Management Agency begun to eliminate the allowance for flood insurance, so homeowners will start to pay more for flood insurance. It is not fair to people to increase their amount of premium for the flood insurance. As mentioned in the article, " [homeowners] will face 25 percent rate increases every year until their premiums reflect the full risk of flooding" (Beeson & O'Neill, 2013). Not everyone is able to

My opinion on the issues that the hurricanes have caused to the economy is actually very frightening. It has dramatically impacted the economy as a whole in many ways. It has caused inflation, unemployment, and has placed a huge bill on the U.S. economy to fix what the hurricanes have destroyed. Although the people that do not live in the areas affected seem to be fine, they will see the effects in some way. The article does state that this

The engineering component of the Florida Public Hurricane Loss Model predicts wind and rain damage to a variety of modelled building configurations in an effort to model hurricane losses. The program uses a Monte Carlo approach to probabilistically simulating damage to the exterior components of the models, but currently assigns costs to the damaged components deterministically. This implementation does not capture variations in component costs and building values. This paper investigates replacing the deterministic costing with probabilistic relationships to more accurately reflect the uncertainty of the vulnerability outputs. The results indicate that cost variations do not significantly impact the variation of the vulnerability results. The conclusion of the paper presents possible explanations for this and recommendations for further investigation.

This article written by Pierre Picard investigates the role of private insurance in the prevention and mitigation of natural disasters. it characterizes the equity-efficiency trade-off between policy makers under imperfect information about individual prevention costs

Insurance in the simplest way is a method of risk transfer that ensures a full compensation in the case of disaster. It ensures a full or partial compensation for damage from events that the insured has no control over. In an insurance contract the insured pays a premium to the insurer with the promise that in case of a loss the insurer will refund the insured and cover the loss or at least part of it. The loss must not necessarily be financial but it should have the ability to be reduced into financial terms. The need for insurance arises from uncertain income and risk aversion. A good example of uncertain income is in the case of agricultural returns. A farmer in a given area cannot be able to ascertain the harvests for each and every season as anything can happen and it could result to a huge loss.

The purpose for this paper is to discuss the importance of transferring risk of one’s assets regarding personal assets through the use of the many insurance models available in today’s market. There will be a discussion of what insurance is and what it represents to those insured. Following will be an explanation of the various insurance models available including whole life, term life, variable life, universal life, and index life programs. All of which are good viable options depending on the needs of potential insurance clients. Also included in the explanation will be the advantages and disadvantages of each insurance option. Finally, there will be a brief summary of the various insurance options and their final outcomes in protecting the policy holder’s family and their future.