Catastrophe risk modeling firm EQECAT Inc. estimates $5 billion to $10 billion in insured losses and $10 billion to $20 billion in total economic damages from Hurricane Sandy.
In a release, the firm said that the broad wind field of the storm, coupled with the unique geography of the New York City region may combine for high economic losses.
“The New York Harbor area is particularly susceptible to high surges and flooding, since the geographic configuration of the coastline between New Jersey and Long Island meet at roughly 90 degrees,” the release states. “A strong onshore wind can push large volumes of water ‘into the corner,’ allowing it to further elevate surge levels.”