Natural and man-made disasters caused great economic damage across the world in 2018. Although, in comparison to 2017, the cost of destruction was less this year. According to sigma estimates from Swiss Re, the losses were down to $155 billion from $350 billion in 2017. Natural disasters accounted for $146 billion dollars of the destruction with catastrophes such as droughts and wildfires in Europe and California, floods and earthquakes in Japan, volcano eruptions in Hawaii, hurricanes, and typhoons. Insurance paid out about $79 billion in claims of the total $155 billion.
United States alone saw its fair share of natural disasters in 2018. California saw two of the five biggest natural disasters with the Montecito mudslides in January and then the Woolsey and Camp fires in November. Rounding out the top five costliest natural disasters in the United States were the Maryland flooding, Hurricane Florence, and Hurricane Michael. The disasters wreaked havoc on the economy, affecting homes and businesses across the nation.
An interesting trend has been occurring in the rebuilding process from natural disasters in the United States. Research conducted by the University of Southampton shows that homes rebuilt after hurricanes tend to be larger than the ones being replaced. Researchers examined areas in New Jersey, North Carolina, Florida, Alabama, and Texas. They found that the average dimensions of houses increased between 19 percent and 49 percent. Although bigger houses are trending across America, the study shows that the ones rebuilt after natural disasters are larger than the average national increase.
How does your insurance work for you in the case of a natural disaster? Not all disasters are covered in common property insurance policies. It is important that you are informed of your options and have the best policy for the region you are in. It is also important to know your options when it comes to business interruption. Business income insurance helps cover any loss in income from the closing of your business all the way through the rebuilding process. This insurance is designed to keep you from seeing a loss in profit and further debilitating your business.
