Damage bill forecast at US$200b

FLORIDA: Hurricane Irma strengthened ahead of an all-but-certain collision with southern Florida after devastating the Caribbean islands and threatening to become the most expensive storm in Unites States history.

With top winds of 249km an hour, the life-threatening storm grew in size, meaning most of Florida will face hurricaneforce winds as it cuts a path through the peninsula into Georgia. It has already left at least 21 people dead, thousands homeless across the Caribbean and threatens to rack up as much as US$200 billion (RM840 billion) in damages.

Damages could easily top US$135 billion here, with other economic losses pushing the price tag as high as US$200 billion, Watson said. Preliminary estimates show losses across the Caribbean nearing US$10 billion.

Total losses from Katrina reached US$160 billion in 2017 dollars after it slammed into New Orleans in 2005.

“Wind damage is totally going to throw a wrench into the insurance industry,” Watson said. “You are talking about companies failing.”

About nine million of Florida’s 20.6 million people may lose power, according to Florida Power & Light Co. Irma may curb natural gas demand in one of the largest US markets and threaten US$1.2 billion worth of crops. Bloomberg