Hurricane Ida Results In An Estimated $95 Billion Worth of Economic Damage
- On August 29, 2021, Hurricane Ida hit Louisiana and left a trail of wreckage. Over the next week, it continued to wreak havoc on the rest of the east coast, claiming casualties along the way.
- The wreckage caused more than a million people in Louisiana and Mississippi to be without electricity, water, and food.
- President Joe Biden has reached out to the respective governors to cooperate and help establish an effort to use all the resources available to help those affected.
With Hurricane Ida passing through the southeastern portion of the United States, it left a trail of wreckage behind it. AccuWeather is estimating the total costs associated with Hurricane Ida to be around $95 billion. Since Hurricane Ida left behind such a disastrous and costly impact, the natural disaster could end up becoming the seventh most expensive hurricane to have hit the United States since 2000.
Background on Hurricane Ida
On Sunday night, August 29, 2021, Hurricane Ida was classified as a Category 4 storm. The hurricane initially hit the gulf coast of Louisiana, causing power outages and flash flooding. By September 1, the hurricane traveled toward northeastern states like New York, New Jersey, and Pennsylvania, where flash floods also ensued.
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Furthermore, Ida caused storm surges, resulting in individuals and families being stranded on the Grand Isle of Louisiana. According to CNN, the hurricane killed at least 26 people in Louisiana and two people in Mississippi. At the storm’s peak, more than one million homes in Louisiana and Mississippi were left without power due to a tower with access to major power lines collapsing over the Mississippi River.
As the hurricane left Louisiana and Mississippi in poor conditions, President Joe Biden contacted the respective governors to provide relief for residents. In addition, President Biden is coordinating efforts to help the Gulf Coast recover from this natural disaster using federal, state, and local authorities.
With thousands of people losing their homes and businesses due to Hurricane Ida, the volume of economic activity has slowed down significantly. According to CNN, an estimated 14,000 people have been forced to move out of their homes in a hard-hit part of Louisiana. As a result of these difficult times, many people do not know how long it will be before they can return to their homes.
Furthermore, the destruction of businesses and buildings has caused many people to be left without a job. No job or income has forced people to use their emergency savings fund to accommodate their costs until their house is safe to move back into or other accommodations are provided.
Importance of Having Insurance
According to Bloomberg, early reports have indicated the damages left by Hurricane Ida could cost insurance companies up to $15 billion. Those with insurance can claim and receive money from their insurance company to help you get back on their feet. Additionally, those with the proper insurance, such as car, home, or health insurance, have a greater chance of financially recuperating lost or damaged items or receiving access to medical care with little to no cost. Unfortunately, almost 11% of the United States population is uninsured, meaning one in ten families affected by the hurricane must pay for their expenses out of pocket, which could be financially challenging.
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CapWay Tip: Though having insurance lowers your monthly net income, it’s a small price to pay when inevitable events result in a major financial setback.Additionally, if someone from your family passes away due to a natural disaster, life insurance could help pay for their funeral expenses. Furthermore, the remainder of the money can also be used to aid you in getting back on your feet.
Though Hurricane Ida claimed the lives of several people, the number of people who were injured by the severe storm has yet to be disclosed to the public. However, due to the Category 4 storm, the need for medical attention is very likely.
Overall, the East Coast region, Louisiana, and Mississippi were physically and economically affected by the aftermath of Hurricane Ida. With the local economy being a fraction of what it once was, it is difficult for those left without a job and home to recover financially. Therefore, whenever a significant event such as Hurricane Ida occurs, it is a wake-up call for everyone because it shows that you always have to be prepared financially for the unexpected.
CapWay Tip: There are two financial lessons to take away from the Hurricane Ida experience. The first lesson is always to have an emergency savings fund to prepare for unexpected expenses. The second lesson is to have different types of insurance that fit your lifestyle to protect yourself and your family in the event of an emergency.
How to Help Those Affected by Hurricane Ida
If you wish to help those who have lost their homes, loved ones, or are struggling to get by, here are a few links to websites to which you can contribute funds or resources.
Donate to those in need of medicine; click here.
Donate to help children affected by the tragedy of Hurricane Ida; click here.
Donate to those in need of food or volunteer your time; click here.
Volunteer your time to help clean up communities affected by this; click here.
If you know anyone who requires assistance, please call the Crisis Cleanup hotline at 1 (844) 965-1386.
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