Insurance can be expensive, but it’s essential in protecting your assets and making sure you’re financially stable in the case of an emergency or major loss. It can also be expensive if you opt for the wrong coverage or don’t properly manage your premiums. To prevent unnecessary costs and protect yourself from financial ruin, make sure you understand what’s covered by your policy and what isn’t. Between cheap generic car insurance rates, increasing rates for good driving habits, property-liability insurance to cover your home and auto assets, and covers for things like vandalism, and theft—insurance is becoming more expensive. If you are interested in the topic of insurance and how your premium can safeguard you in the case of an emergency, keep reading. Below we will take a look at some of the biggest insurance payouts in history so you can learn from them and protect your business or assets accordingly.
China Earthquake, $1 Billion
The 2008 earthquake in China caused 9.0 magnitude on the Richter scale and killed 80,000 people. The quake was one of the most powerful recorded in history, with a magnitude of 9.0 on the Richter scale. The earthquake also caused a tsunami that struck coastal areas of Japan, triggering a nuclear crisis at Fukushima Daiichi Nuclear Power Plant.
Hurricane Andrew, $25 Billion
This hurricane hit Florida during the summer of 1992 and caused an estimated $25 billion in damage to the area’s infrastructure and property. Hurricane Andrew was one of the most powerful hurricanes ever recorded and left much of South Florida without power for weeks after its landfall. The hurricane has been blamed for more than 1,000 deaths in the United States alone.
The Great Hanshin Earthquake, $33 Billion
This earthquake struck Kobe, Japan, on January 17th, 1995, and is known as one of the most destructive natural disasters in Japan’s history. The quake had a magnitude of 7.2, killed more than 6,000 people, and injured more than 12,000. The earthquake caused a nuclear meltdown at the Fukushima Daiichi Nuclear Power Plant in Japan and forced over 200,000 people from their homes.
Hurricane Katrina, $50 Billion
Hurricane Katrina was a Category 3 hurricane that struck Louisiana and Mississippi on August 29th, 2005. The hurricane caused an estimated $50 billion in damage to property and infrastructure in the Gulf region due to its high winds and floodwaters. Hurricane Katrina also caused an estimated 1,833 deaths in the United States alone.
The Great East Japan Earthquake, $56 Billion
The Japanese earthquake occurred on March 11th, 2011, with a magnitude of 9.0. This earthquake caused more than 15,000 deaths and damage to an estimated $56 billion worth of property. Much of the damaged property was from buildings damaged by tsunami waves from the earthquake.
Hurricane Andrew, $60 Billion
Hurricane Andrew was the costliest hurricane ever to hit the United States, causing damage to an estimated $60 billion worth of property and infrastructure in Florida. The hurricane caused an estimated $25 billion in damage to South Florida’s infrastructure and property. Hurricane Andrew also caused an estimated 2,000 deaths in the United States alone.
The Asian Tsunami, $75 Billion
This tsunami struck coastal areas of Indonesia, Sri Lanka, India, Thailand, and the Andaman Islands on December 26th, 2004. The tsunami triggered a nuclear crisis at Fukushima Daiichi Nuclear Power Plant in Japan, killed over 230 people, and caused damage to an estimated $75 billion worth of property.
Conclusion
While each claim has a unique set of circumstances, the basic concept remains: All significant insurance claim payouts represent millions of dollars in losses. Without insurance to offset the costs of these damages and the payouts that they require, the effort to repair the damages would be incredibly difficult to see through. We hope that after reading this article it is plain to see how important insurance is on a grand scope when it comes to repairing mass amounts of damage and societal infrastructure. Regardless of their cause, these large insurance payouts in history show just how valuable insurance can be for businesses and individuals alike.
Matt Patterson Insurance is a local Insurance and Financial Services agency serving San Marcos, Texas. Our mission is to provide the best possible service to our customers