Daily Real Estate News  |  November 2, 2007  |   The Nation's Most Expensive Disasters
The recovery process for extreme natural disasters like last week’s California forest fires is neither quick nor cheap.

Using numbers from the Federal Emergency Management Agency (FEMA), Forbes magazine calculated the country’s most expensive natural disasters in terms of what the disasters cost the federal government.

Hurricanes dominate the list because they occur much more frequently than earthquakes. Plus, FEMA’s relief structure is supplemental insurance. Many home owner policies don’t include flood damage but they do cover fire damage, which means FEMA doesn’t have to pay to repair homes lost in last week’s San Diego fires.

Where the agency kicks in for residents affected by natural disasters is beyond what insurance will pay for — to a limit of $28,200. This means more money to hurricane-damaged areas where home owners might not have flood insurance policies to fall back on.

"FEMA is designed to get people back on their feet," says Aaron Walker, a spokesman for FEMA. "It's not designed to make people whole."

In terms of tax dollars spent, here are the most expensive U.S. natural disasters.

1. Hurricane Katrina, 2005: $31.3 billion
2. Northridge Earthquake, 1995: $9.5 billion
3. Hurricane Rita, 2005: $4 billion
4. Hurricane Georges, 1998: $2.8 billion
5. Hurricane Andrew, 1992: $2.7 billion
6. Hurricane Ivan, 2004: $2.6 billion
7. Loma Prieta Earthquake, 1989: $2.5 billion
8. Hurricane Wilma, 2005: $2.2 billion
9. Hurricane Charley, 2004: $2 billion
10. Hurricane Frances, 2004: $1.9 billion

Source: Forbes, Matt Woolsey (10/29/07)