Hurricane Harvey may solve the auto industry’s inventory problem. But right now, it's about to create a giant headache for the federal government. Based on the latest estimates from Irvine, California-based CoreLogic, insured flood losses for homes in the affected areas of Texas and Louisiana could total between $6.5 billion to $9.5 billion. Since private insurers typically don’t provide personal flood insurance, all but $500 million of that will fall to the Federal Emergency Management Agency’s National Flood Insurance Program, or NFIP. According to the Street, if insured damages reach the high end of this range, it would totally deplete the $7.5 billion of cash and available credit available to the 49-year-old government program, which provides about 98% of residential flood insurance.
Natural disasters are getting to be fierce these days leaving damages of properties to the extreme. Though there is nothing we can do to stop the power of nature from inflicting the harm to both lives and properties, we can do something by sending any help we can to the people affected. It would really be a big strain on the budget of the agency in charge for this thing. We are hoping that funds can be coming so that a good rehabilitation and rebuilding could start as fast as it should be. People should always be resilient in the face of this another big challenge.