Preliminary Report: Texas Economic Losses of $22 Billion Due to Floods

The significant losses incurred by the state of Texas as a result of the floods that hit the state are being revealed. AccuWeather, a company specializing in weather forecasting services, indicated in a preliminary report that the floods that caused widespread damage in parts of the American state of Texas will result in economic damages and losses ranging between $18 and $22 billion.

This value includes insurance claims costs in addition to expected search, repair efforts, and comprehensive cleaning operations, as well as the extended impact on tourism in the region.

AccuWeather points out that despite the high cost of water-related damages, home insurance policies usually do not cover them. Therefore, many homeowners are often not adequately covered against flood damages.

While AccuWeather provided an initial estimate of total losses, the extent of impact on the reinsurance sector remains unclear.

As the company mentioned, only 4% of homeowners in the United States are covered against floods through the National Flood Insurance Program administered by the Federal Emergency Management Agency.