Nearly $1T of insured property in Ike's path

By JERUSALEM POST STAFF
As Hurricane Ike churns toward the Texas Gulf Coast, nearly $1 trillion of insured commercial and residential property lies in its path, according to firms that specialize in catastrophes. The largest concentrations of exposure in Texas are along the northern part of the coast near Houston - an area that contains about one-fifth of the United States' crude-oil refining capacity and more than 2 million people. While high winds and flooding are of concern for inland properties, a hurricane's strength diminishes as it moves inland. "Hurricane Ike's large windfield will play a major role in the extent of damage it inflicts both offshore, from winds and waves, and onshore from wind and storm surge," said Christine Ziehmann, director of model management at Risk Management Solutions Inc. RMS estimates there is more than $70 billion worth of insured exposure bordering Galveston Bay and the outermost Houston Ship Canal. An additional $900 billion of insured properties lies further inland, within Houston's Harris County, the Newark, Calif.-based firm said.