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Cma Hurricane Case Study

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The problem that separates this storm from others is that this storm was one of those most costly storms in recorded history. In New York City alone, the damage caused by the storm was estimated at $19 billion; which includes all private, public, and indirect costs (Huffington post). This storm destroyed over 305 thousand housing units, resulting in the payout of over $1 billion of assistance money paid out by FEMA to New York City families whose properties were destroyed (Huffington post). “$855 million was used to help survivors with home repairs and temporary rental costs” and the other “$145 million was used for other uninsured hurricane related expenses such: moving costs, personal property, transportation, medical and dental costs, and …show more content…

The final financial impact that resulted from the storm was in the job market (Dun & Bradstreet). Potentially, 1.5 million businesses, both small and large, employing over 9.3 million individuals, were affected by the storm (Dun & Bradstreet). Of those businesses, 73 percent of them are small businesses that barely stayed afloat before sandy hit (Dun & Bradstreet). There is no real number of how much of those businesses closed down and how much of there employees become unemployed, but it is estimated that about 505 thousand businesses will have severe financial difficulties that may be near impossible to come back from (Dun & Bradstreet). In sum, Hurricane Sandy was costly because businesses weren’t making money and required bailout funds, homes and key infrastructure needed insurance and grant money to rebuild, and thousands of dollars were lost in tourism and trade as a result of the …show more content…

One of those problems came from the insurance money needed by families to repair their homes. While FEMA did there job in helping in an emergency situation, the insurance companies did not. As a result of the storm, over two and a half years later, “Thousands of claims have still not been resolved and there is evidence that countless homeowners were victims of what appears to be wide scale fraud where original damage reports were later changed to make it look like the damage wasn't as bad” (Sharyn Alfonsi CBS). Such as in the case of Sharyn Alfonsi’s article in the CBS news, where countless residence of New Yorkers were the victims of insurance companies that changed engineering reports which resulted in the extreme underpayment of insurance policies. On top of that, due to that fact that several businesses had to close down for the storm, and several of those businesses where destroyed, several small businesses had to close their doors since they could no long afford to pay the rents to stay there. Lots of these businesses are still struggling to date form the storm. Moreover, since of the mass destruction the storm did to power lines and fuses, numerous towns in Long Island have begun the very expensive job of building underground power lines. Few towns had it before the storm, but because of the costliness of continued repairs to power lines after powerful storm, it resulted in many residents of

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