As the 2005 hurricane season advances, repair costs forresidents of the southeastern Unites States remain 20 to 40 percenthigher than in other parts of the country, according to RiskManagement Solutions. Elevated labor and material costs resultingfrom last year's hurricanes are likely to continue through the 2005season, predicts RMS, which has been tracking the demand surgethrough an analysis of claim data from the 2004 storms.
|As of June 2005, a considerable amount of repairs were stillunderway in Florida. In this environment, even a modest event couldtrigger further demand surge, escalating insured and economiclosses, particularly in the Southeast, RMS noted. “Due to thesustained escalation of labor costs in these states, if a hurricanemakes landfall in the southeastern U.S. this year, its economicimpact will be as if it were the fifth event in the 2004 season,”said Phil LeGrone, claim research director for RMS.
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