Why Imperial's Havens Says Harvey Losses May Reach $100B

The video discusses the potential economic losses from Hurricane Harvey, estimated to reach $100 billion. It compares these losses to past hurricanes like Katrina and Sandy, considering the relative sizes of affected economies. The discussion highlights the low insurance coverage in Houston, with only about 15% of homeowners insured, and the challenges posed by the extensive flooding. The video emphasizes the lack of flood insurance in typical homeowners' policies, leading to significant undercoverage in the region.

What factors were considered in estimating the economic losses from Hurricane Harvey?

• The population density of affected areas

• The size of local economies and event magnitude

• The number of hurricanes in the past decade

• The speed of the hurricane's winds

Which past hurricane had economic losses ranging from $120 to $160 billion?

• Hurricane Sandy

• Hurricane Harvey

• Hurricane Katrina

• Hurricane Irma

What percentage of homeowners in Harris County are estimated to have flood insurance?

• About 70%

• About 50%

• About 30%

• About 15%

What is a significant challenge for homeowners in Houston regarding insurance?

• High premiums for flood insurance

• Lack of coverage for wind damage

• Exclusion of flood insurance in typical policies

• Mandatory earthquake insurance

What is a potential consequence of the insurance gaps in Houston?

• Increased government subsidies

• More insurance companies entering the market

• Higher insurance premiums

• Significant uninsured losses