Louisiana Economic Development: $8.7B Residential, Commercial Damage in August Flood

The August 2016 flooding in Louisiana caused an estimated $8.7 billion in damage to residential and commercial properties, according to Louisiana Economic Development.

Damage to businesses in the state has exceeded $2 billion, according to a report commissioned by LED, the mission of which is to implement economic development strategies for the state. The damage estimate does not include damage to the state’s infrastructure.

LED commissioned economist Dek Terrell of Lewis Terrell and Associates LLC to conduct the damage assessment.

In addition to an estimated 109,000 housing units damaged, nearly 20,000 Louisiana businesses were interrupted by the flooding that began Aug. 11 and continued for days, leading to the flooding of more than 6,000 businesses in 22 affected parishes.

LED surveyed 455 economic driver firms in flood-impacted regions — those employers that contribute the most output to the state’s economy — and found that 6 percent suffered significant damage while 9 percent sustained minor damage.

“The good news we want to project is that most of our major industries in Louisiana remained open and today are continuing their operations successfully,” LED Secretary Don Pierson said. “During the three-week period after the flooding event began, Louisiana shouldered labor and value-added production losses that affected 6 percent of our economic activity statewide. As a state economy we are doing better every day, and we remain strong and open for business.”

Three of every four homes in Livingston Parish were impacted by flooding, the LED said.

The operations of an estimated 20,000 businesses were affected by the flooding. At peak, LED estimates that 278,500 Louisiana residents were unable to work due to temporary closures, suspension of operations, transportation impasses and residential flooding.

FEMA has so far provided more than $1 billion in total federal assistance to Louisiana disaster survivors and communities, less than 30 days after the flooding event began. More than 63,000 Louisiana families are receiving housing-related assistance through federal programs.

Gov. John Bel Edwards is asking Congress for $2 billion in additional flood disaster aid assistance.

Separately, in its most recent Global Catastrophe Recap report, Impact Forecasting, Aon Benfield’s catastrophe model development team, estimated that the total economic losses as a result of the Louisiana flooding are expected to range between $10 billion and $15 billion. However, because more than 80 percent of damaged homes were not covered by flood insurance, the public and private insured portion of the losses will be significantly less — in the low-digit single billions, the report estimates.

Related:

• Experts Say Mass Katrina-Like ‘Exodus’ not Expected After Louisiana Flood
• Hurricane Katrina: The Numbers Tell Their Own Story
• Hurricane Katrina Changed the Market in Gulf States
• 86,500 People Affected by Louisiana Floods Seek Federal Aid
• RMS: Flood Insurance Uptake Low in Areas Hit Hardest by Louisiana Flooding
• Louisiana Issues Post-Flooding Emergency Insurance Rule
• As Louisiana Surveys Flood Damage, Death Toll Rises
• AIR Worldwide: Louisiana’s Record Rainfall Caused by Low-Pressure System
• 6 Dead, Tens of Thousands Evacuated in Louisiana Flooding
• Louisiana Reminds Insurers of Flooded Vehicle Requirements
• Analysis: Flooding Intensifies Louisiana’s Financial Woes

Topics Commercial Lines Flood Louisiana