U.S. Tornado Disaster Recovery Cost: At Least $3 Billion

While the virtual IT world scrambles to fix the Log4j vulnerability, the physical IT world is striving to recover from tornadoes that ripped across the central United States, triggered at least 88 deaths, and caused roughly $3 billion in insured losses.

Still, it’s impossible to say exactly how much time and money MSPs and businesses will spend recovering, restoring and/or rebuilding IT systems that were damaged or destroyed by the tornados and associated storms. Still, the early estimates on storm damage are massive.

U.S. Tornado Disaster Recovery: Insured Costs, Business Destruction

Indeed, the tornados that cut across Arkansas, Illinois, Kentucky, Mississippi, and Tennessee in early December 2021 will trigger about $3 billion in insured losses, according to catastrophe modeling firm Karen Clark & Company. This KCC estimate includes the privately insured damage to residential, commercial, and industrial properties and automobiles.

Among the additional KCC report findings:

  • There were 60 reports of tornadoes and over 350 reports of damaging wind gusts in those six states from December 9 through December 12, 2021;
  • Most of the damage was caused by the “Quad-State Tornado”, which impacted four states in four hours along a path that exceeded 200 miles in length.
  • The most significant damage has been observed in Kentucky, particularly in Warren and Graves counties, where hundreds of homes and businesses have been destroyed.

According to a separate estimate, more than 100 local businesses in Warren County were destroyed by the storm, according to The Bowling Green Daily News.

Tornado Disaster Recovery: FEMA, Volunteers and SBA Loans

Amid that backdrop, President Biden declared Kentucky a major disaster area, and FEMA (Federal Emergency Management Agency) began to coordinate emergency response with volunteer organizations.

Meanwhile, the U.S. Small Business Administration (SBA) has introduced disaster loan assistance for businesses, private nonprofits, homeowners, and renters across multiple Kentucky counties.

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