(Bloomberg) -- Damage from Patricia, the strongest hurricane ever measured in the Western Hemisphere, may cost the U.S. billions from floods, even after the storm spared the largest cities in Mexico.
Flooding in Texas may lead to more than $3 billion in losses, though it’s too early to project the extent of damages, according to Chuck Watson, director of research and development at Kinetic Analysis Corp. Losses in Mexico are likely to be less than $2 billion, he said.
Most of the costs in Texas will be for infrastructure such as roads and bridges, and the U.S. government may cover many of the expenses through the National Flood Insurance Program, Watson said. Homeowners and commercial businesses including malls and industrial companies are likely to suffer damages, said Erik Nikodem, president of property in the Americas at American International Group Inc.
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