Today’s Readings: 10-1-2022

Today’s readings pertain to how Ian is expected to change people and places.

Insurers brace for hit from Florida’s costliest storm since 1992.

Tom Larsen, associate vice president, hazard & risk management, CoreLogic, says that “Hurricane Ian will forever change the real estate industry and city infrastructure. Insurers will go into bankruptcy, homeowners will be forced into delinquency and insurance will become less accessible in regions like Florida.” 

Tread on us, please. Florida needs a new socialism-friendly slogan after Hurricane Ian.

Watch Governor DeSantis change his tune about federal help now that it is Florida that needs help.

We realize that some people may point out that our beloved governor, when he was a Tea Party member of Congress, was one of just 67 U.S. House members who voted against allowing the Federal Emergency Management Agency to pay out claims to the New York and New Jersey residents who held federal flood insurance policies during SuperStorm Sandy.

“I sympathize with the victims of Hurricane Sandy and believe that those who purchased flood insurance should have their claims paid,” DeSantis had said. “At the same time, allowing the program to increase its debt by another $9.7 billion with no plan to offset the spending with cuts elsewhere is not fiscally responsible.”

I can assure you, Gov. DeSantis is not talking about fiscal responsibility taking precedence to federal payouts to Florida flood victims after Hurricane Ian.

In fact, while the storm was coming ashore this week, DeSantis was already asking President Joe Biden to order FEMA to write a blank check to Florida by providing 100 percent federal cost sharing for debris removal and emergency protective measures in the state for the next 60 days, with a 90 percent federal cost sharing burden after that initial period.

Hurricane Ian could cost US $67bn in economic damages.,due%20to%20having%20to%20meet%20new%20flood%20regulations.

Chuck Watson, a disaster modeller at Enki Research, said the storm could cost the US up to $67 billion in economic damages. Besides damaging homes and infrastructure, the hurricane also ruined orange farms in the largest producing state, causing orange juice prices to surge

Only around 30% of the damage is covered by commercial insurance, Watson told Climate Home News. 60% of Florida residents do not have flood insurance, according to a 2020 McKinsey report

Damage to expensive properties and infrastructure on Florida’s coastline has also contributed to the enormous overall cost. “Explosive growth in coastal zones, regulatory factors, and so forth means more property with higher values in danger zones,” Watson said. 

Hurricane Ian may cause wider ranging economic impacts due to “fragile capital markets, on the tail end of the housing bubble,” Watson added. “Reconstruction values may be significantly higher than market values,” he said, adding that it could cost $400,000 to rebuild a $200,000 beach house due to having to meet new flood regulations. 

Finance expert discusses far-reaching ripple effects from Hurricane Ian.

In Wichita, Friends University Finance Professor Jim Long is studying Ian’s effects on the economy and the supply chain. One likely impact is a jump in orange juice prices.

“We think of Florida, we think of citrus trees. Certainly, the winds will knock down the oranges. Prices will spike,” Long said.

Florida’s economy is diverse with the hurricane also potentially impacting prices on an array of items from lumber to electronics. It could also potentially impact airplane manufacturers.

“It slows down everything downstream through these companies to the people they supply, as well,” Long said.

He estimates Ian could affect prices across the country for about nine weeks. It’s not so easy as just flipping a switch.

Florida’s insurance woes could make Ian’s economic wrath even worse.

How hurricane Ian could temporarily impact gas prices.

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