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  <title>Harvey costs seen rising to $42 billion as flooding intensifies | PropertyCasualty360</title>
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    <h3 class="smallview-hidden"><span>Filed Under:</span><a href="/Agent-Broker">Agent Broker</a>, <a href="/Agent-Broker/es-specialty-business">E&S/Specialty Business</a></h3>
    <h1>Harvey costs seen rising to $42 billion as flooding intensifies</h1>
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      <p class="article-info">Aug 29, 2017 <span class="separator">|</span> By <a href="/author/sonali-basak" >Sonali Basak</a></p>
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        <figure class="main-image">
      <img src="http://media.propertycasualty360.com/propertycasualty360/article/2017/08/29/harvey-flooding-spring-tx-davidjphillip-ap17240789-crop-600x338.jpg" alt="A home is surrounded by floodwaters from Tropical Storm Harvey on Monday, Aug. 28, 2017, in Spring, Texas. Homeowners suffering from Harvey flood damage are more likely to be on the hook for losses than victims of prior storms, a potentially crushing blow to personal finances and neighborhoods along the Gulf Coast. Experts say far too few homeowners have flood insurance, just 2 of 10 living in Harvey’s path of destruction. (AP Photo/David J. Phillip)"><!-- 440x248 -->
            <figcaption>A home is surrounded by floodwaters from Tropical Storm Harvey on Monday, Aug. 28, 2017, in Spring, Texas. Homeowners suffering from Harvey flood damage are more likely to be on the hook for losses than victims of prior storms, a potentially crushing blow to personal finances and neighborhoods along the Gulf Coast. Experts say far too few homeowners have flood insurance, just 2 of 10 living in Harvey’s path of destruction. (AP Photo/David J. Phillip)</figcaption>
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    <p>(Bloomberg) --&nbsp;Estimates for <a title="Top 10 auto insurers in Texas likely dealt huge blow from Hurricane Harvey" href="http://www.propertycasualty360.com/2017/08/29/top-10-auto-insurers-in-texas-likely-dealt-huge-bl" target="_blank">damages caused by Hurricane Harvey</a> are climbing with the storm poised to regain strength in the Gulf of Mexico before crashing back on land.</p>
<h2>Economic losses</h2>
<p><br />Risk modeler Chuck Watson of <a title="Enki Research" href="http://www.enkiops.org/enki_research/Welcome.html" target="_blank">Enki Research</a> on Tuesday lifted his projection for economic losses to $42 billion, up about $12 billion from Monday.</p><!-- ad -->
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<p>&ldquo;We have assumed more damage and obstruction to the drainage and flood-control systems than was the case yesterday,&rdquo; he said in a note to clients.</p>
<h2>Flood damage coverage</h2>
<p><br />Analysts including David Havens at Imperial Capital have estimated the costs could top $100 billion, potentially causing more havoc than Hurricane Katrina in 2005, which spurred at least $118 billion of losses. About 47% of that was insured, while insurance brokers have said a lower portion of Harvey&rsquo;s costs will be covered because regular homeowners&rsquo; policies don&rsquo;t include flood damage.</p>
<p><strong>Related:&nbsp;<a title="AIR Worldwide estimates Hurricane Harvey insured losses" href="http://www.propertycasualty360.com/2017/08/28/air-worldwide-estimates-hurricane-harvey-insured-l" target="_blank">AIR Worldwide estimates Hurricane Harvey insured losses</a></strong></p>
<p>&ldquo;You&rsquo;re not going to lose everything,&rdquo; Watson said by phone. Those assuming more than $100 billion in damages are &ldquo;assuming a lot of structures are going to be totaled with 100% losses rather than partial losses.&rdquo;</p>      
    
              
  
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