Mississippi River May Cause Most Flooding Losses Since 2005

The Mississippi River’s surge may cause the most flooding losses in the U.S. since Hurricane Katrina in 2005, with the federal government shouldering the majority of claims.

Flooding costs in states including Tennessee and Missouri may exceed losses from 2008 when Hurricane Ike struck Texas and the Cedar River crested in Iowa, according to Elizabeth Malone, insurance-industry analyst at Wunderlich Securities Inc. Katrina caused more than $16 billion in losses to the U.S. National Flood Insurance Program, which covers homes and some businesses. Ike led to about $2.6 billion in NFIP claims.