FM Global: Hurricane Irene Could Cause More Damage Than Katrina
Saturday, August 27, 2011
With the state bracing for Hurricane Irene, a Johnston-based insurance company with offices worldwide is warning that property damage for the storm could surpass that of Katrina, the hurricane that devastated parts of the south in 2005.
FM Global, one of the world’s largest commercial property insurers, is saying Irene may leave unprecedented damage because of her severity, path and overall geographic footprint, if the current forecast holds true.
Hurricane Katrina left damages of $108 billion, according to the company. But because of where Irene may hit, FM Global said there is potential for significantly more damage.
According to the company, 65 million people are in the path of the hurricane, as well as one of the greatest concentrations of the US economy, a fragile electric grid, some of the nation’s busiest airports, the highest concentration of nuclear power plants; and a high density of older residential housing stock just to name a few.
“We have the potential to see something as a country we have never seen before,” Chris Johnson, FM Global Senior Vice President Chris Johnson said. “And for the insurance industry this will be a game changing event.”
A Potentially Devastating Event
Dr. Louis Gritzo, vice president and manager of research at FM Global, said the key to minimizing a potentially dangerous situation it to take action.
“If you had to draw a line for a storm that was going to hit bad places, this would be it,” he said. “This is potentially devastating event.”
Gritzo, who oversees FM Global’s team of scientists who conduct research to understand property hazards and identify the property protection measures that can reduce the probability and impact of potential loss at client facilities, said it’s better to take all precautions.
“There is no doubt there is going to be wind and water, so infrastructure could be affected,” he said. “We are telling people to take this seriously.”
Power, Water, Wind and Planning
Gritzo said there is a lot Rhode Islanders can do to mitigate some of the damage. He said the four areas of focus should be power, wind, water and planning.
There is a high likelihood there will be power outages so he recommends loading up on batteries and making sure resident have gas in their car. He said to stock up on food and water and if possible, have an extra cell phone battery.
In terms of wind, Gritzo recommends strapping everything down that has the potential to be blown away.
He said that the trajectory of the storm suggests a lot of water could be pushed up Narragansett Bay, which would cause major problems. He said five-six feet of flooding is possible in some areas.
As far as planning, Gritzo said the key is to make sure families have a way to reach each other and to know where everyone is going to be as the storm hits.
Take Action
Gritzo said his one word of warning to Rhode Islanders is to not disregard the hurricane.
“The challenge is to be motivated to take action,” he said.
And if the storm doesn’t hit?
“Be relieved, not disappointed.”
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