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Katrina Could Top Andrew Costs

By Alabama Public Radio

Mobile, AL – An early estimate says insured losses from Hurricane Katrina could run as a high as $26 billion. If that figure from a risk modeling firm proves true, it would make Hurricane Katrina more expensive than Hurricane Andrew. Andrew caused about $21 billion in insured losses in 1992. Another risk modeling firm lowered its projections on Katrina's losses twice after the storm hit east of New Orleans. It says the damage could range from $9 billion to $16 billion. The preliminary estimates from Alabama, Mississippi and Louisiana do not include possible damage to oil drilling platforms and other oil operations in the Gulf. Those operations do produce and refine a significant amount of U.S. fuel.

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