Hurricane Laura, a storm that hit the northwestern Gulf Coast on Wednesday, has caused devastating damage to the area. It is the most intense storm to hit that region since 1856. According to a recent MReport and CoreLogic, the damage from the storm “brings threat of further economic uncertainty to the region”. The report revealed that insured wind and storm surge losses for properties in Louisiana and Texas are roughly between $8 and $12 billion. Insured storm surge losses are estimated to contribute less and half a billion to this total. In addition to these damages, Americans may struggle to make their loan payments. The report stated, “ Overall home mortgage delinquency rates (30 or more days past due, including those in foreclosure) in the Beaumont, Texas (9.3%) and Lake Charles, Louisiana (9.5%) metropolitan areas were already above the national rate (7.3%) based on the May 2020 CoreLogic Loan Performance Insights report”.
HOW WILL HURRICANE LAURA IMPACT THOSE LIVING IN TEXAS AND LOUISIANA?
Data shows that natural disasters cause a spike in mortgage delinquencies. This implies that Hurricane Laura will add financial burdens to those affected. Families all across the nation are struggling to get by due to the ongoing pandemic. This natural disaster will only worsen their situation. When Laura made landfall, it missed some of Texas and Louisiana’s more populated cities. Of course there is never a good place for a hurricane to make landfall, however the fact that Laura struck land in a more sparsely inhabited area is a best case scenario. For such a large storm, this was the best possible outcome because it spared cities such as Houston and New Orleans. Wind and storm surge are going to be the primary cause of property loss, unless tornado activity occurs as the storm progresses. The report includes homes and commercial properties, but does not include broader economic loss from the storm.
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