Economics Effects Of Flood Damage

The economic fallout of flood damage can be massive. When the federal government talks about a region thats been hit hard by flooding, the figures being discussed can total millions of dollars. The cost staggers the imagination. When you break down the economic loss to the individual homeowners who have been affected, the cost of flood damage is more staggering still.

The economic effects of flood damage affect people both individually and as a community. Individuals are financially devastated when their homes have been flooded, especially if their home insurance doesnt cover this type of damage. The carnage can include anything from an inch of water on a bare concrete basement floor to the complete submersion of the living space. Flooding can mean thousands of dollars worth of damage and even put a family into bankruptcy.

The expense of individual victims of flooding is found in the loss of personal property, structural damage, and clean-up costs.
Personal property that has been lost may be irreplaceable. Family photos and records, computer files, antiques, heirlooms, even a childs favorite blanket or last years Christmas gifts, all can be lost. Some property can be saved by drying and cleaning it but much of it, including appliances and furniture, will be hitting the trash pile. Homes can have severe structural damage as a result of a flood. Foundations can break or shift, walls can wash out, even roofs can collapse. Most structural damage can be repaired but some homes will never be lived in again.

Clean-up costs are often enormous. Companies specializing in flood damage clean-up may have to be called in to pump out the basement, clean the walls and flooring to prevent mold, and haul out destroyed property. The bill can reach hundreds of dollars in cleaning supplies even if you do the job yourself.
The economic effects on the community as a whole can be staggering. When businesses are damaged and will stay that way for a long time, tax revenue is destroyed right along with the properties. Employees have nowhere to work and the unemployment line can grow long overnight.
These community wide expenses can span months or even years. Even in flooding where clean-up is immediate, insurance claim payments can take a long time to land in the hands where they will do some good. Inventory must be replaced, public roads need to be repaired, and previous customers need time to adequately recover well enough to once again become active consumers.

The financial fallout of flood damage covers a lot of territory and is a difficult obstacle to hurdle. It takes time and effort to handle the economic loss of flooding, but recovery is possible.