US hurricane season to see rising recovery costs: Moody's

By Ovunc Kutlu

ANKARA (AA) - As the hurricane season has begun in the US, it will see rising costs for recovery, especially in states that have the highest hurricane exposure risk, global rating agency Moody's said in a report on Monday.

The agency said recovery from damaging storms will be costly for individuals, insurance companies, and all levels of government -- state, local, and federal.

"Increased construction and labor costs along with limited available building materials stand to delay rebuilding after storms this hurricane season," the report added.

The state of Florida has the greatest hurricane exposure risk in the US, while Louisiana retains the largest share of employment and wages in hurricane flood zones. In the Pelican State, 30% of wages earned and 27.2% employment are in a hurricane flood zone, according to the agency.

US President Joe Biden administration has committed last month $1 billion for state and local governments in pre-disaster mitigation projects in 2021, as part of combating climate change, Moody's noted.

The country's Federal Emergency Management Agency proposed in December new rules for its disaster declaration process that would allow public funding via an assistance program.

The 2021 Atlantic hurricane season officially began last Tuesday, running from June 1 to Nov. 30.

The National Oceanic and Atmospheric Administration (NOAA) announced last month that it is forecasting a 60% chance the US would experience an "above-normal" Atlantic hurricane season but cautioned "experts do not anticipate the historic level of storm activity seen in 2020."

NOAA is expecting between 13 to 20 named storms, including six to 10 that could become hurricanes. Of those, three to five are expected to become major hurricanes of category three, four, or five.