As the 2005 hurricane season advances, repair costs for residents of the southeastern Unites States remain 20 to 40 percent higher than in other parts of the country, according to Risk Management Solutions. Elevated labor and material costs resulting from last year's hurricanes are likely to continue through the 2005 season, predicts RMS, which has been tracking the demand surge through an analysis of claim data from the 2004 storms.
As of June 2005, a considerable amount of repairs were still underway in Florida. In this environment, even a modest event could trigger further demand surge, escalating insured and economic losses, particularly in the Southeast, RMS noted. “Due to the sustained escalation of labor costs in these states, if a hurricane makes landfall in the southeastern U.S. this year, its economic impact will be as if it were the fifth event in the 2004 season,” said Phil LeGrone, claim research director for RMS.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
