California is expecting at least $5 billion in damages due to severe flooding.
Estimates from Moody’s predict California will suffer between $3 billion and $5 billion in economic losses after flooding and severe weather hit the state since late December 2022.
CALIFORNIA STORM VIDEOS SHOW TSUNAMILIKE DISASTERS
The state is experiencing widespread power outages, and entire communities are covered in mud or water.
Over 90% of the state is under a flood watch, and the storm washed away a pier in Santa Cruz and beachside streets, damaged homes and trees, and caused mudslides and overtopped rivers.
More than 60 roads and highways have been closed due to trees, rocks, and mud making them impassable. More than 14 million gallons of raw sewage has been swept into San Francisco Bay between Dec. 31 and Jan. 3 after storms overwhelmed the state’s plumbing systems. Another 8 million came from a single storm on Jan. 4.
Because less than 2% of California homes are insured, a “relatively small proportion” of the economic damage will be covered by insurance, Moody’s reported.
The death toll stands at 19 as of Jan. 16, one of which is a 5-year-old boy who was swept away from his mother’s arms as she was being rescued.
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The damages to California’s infrastructure come as Gov. Gavin Newsom plans severe budget cuts for climate change programs and flood prevention projects due to a $22.5 billion budget deficit.
The estimated total amount in damages is based upon event reconstruction and reflects property damage and interruptions to businesses with “residential, commercial, industrial, automobile and infrastructure assets,” according to the company.
