Hurricane Harvey is on its way to becoming the costliest natural disaster in U.S. history, with damage estimates reaching as high as $160 billion, according to AccuWeather.
At that estimate, Harvey could potentially hit the combined cost of previous storms Katrina and Sandy. AccuWeather's report claims Harvey's price tag could end up totaling a full one percent of the entire nation's $19 trillion GDP.
AccuWeather President Joel Myers explained, "Parts of Houston, the United States' fourth largest city, will be uninhabitable for weeks and possibly months due to water damage, mold, disease-ridden water and all that will follow this 1,000-year flood," saying business leaders would be wise to take note of the storm's economic consequences.
While the hurricane's initial destruction has come and gone, flooding and continued heavy rain should continue for the rest of the week, according to the National Hurricane Center, as reported by USA Today.
A Newsweek report broke down some of the costs and found that an asset management company William Blair & Co. calculated the insurance costs stemming from Harvey's damage would've been around $25 billion -- if Harvey had landed as a Category 3 storm.
Instead, it landed as a Category 4.
The news report also found that of the homeowners living in the path of the hurricane, only two out of every 10 had appropriate insurance coverage, according to Robert Hunter, director of Insurance at the Consumer Federation of America. Hunter also estimated that the cost of flood damage alone would hit $35 billion.
Also taking a hit is the oil economy that resides within Texas. An Exxon Mobil oil refinery near Houston, as well as 10 other oil refineries, have all shut down in the wake of the storm. This economic hit hurts not only Texas, but creates shockwaves through the country which will now have to pay $.04 more per gallon on gasoline to make up the difference, the AAA Automobile Club told the New York Times.
All in all, this storm is guaranteed to have lasting effects in U.S. for a long while, well after Harvey's last raindrops have dried.
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