The new number from risk modeling firm Eqecat is five times higher than its initial forecast, which I cited in a post on Tuesday about the potential losses from the superstorm. Insurance will cover as much as $20B of the economic losses, four times more than it envisioned before the storm hit land. Electric and utility losses were “significantly” higher than normal from “a more typical category 1 storm,” the company says. The damage to New York area subways and roadway tunnels also caught forecasters by surprise. Yesterday the firm said that Sandy struck the region of the country “with the highest population and GDP contribution.” But while the losses are high on an absolute basis, Equcat says they’re relatively low “as a portion of the underlying economy and asset base.”


A lot of work to rebuild. Look at it this way: Sandy will have created more jobs and gotten less people killed than Obama or Romney will in the next four years.
It was interesting to see how Hollywood turned out for Katrina and the floods in Haiti. Yet all I heard today was how those who had downtown Manhattan residences had to scramble for uptown hotel rooms. NJ has many areas that were absolutely devastated, and there are many stars with roots in the Garden State. It will be interesting to see what celebrities step up this time.
As far as construction firms are concerned, Christmas has come early. There are plenty of affluent citizens in NYC who will be willing to pay top dollar to repair their properties. For just about everyone else, Sandy has been a nightmare.