Updated on October 2, 2017
On August 29, 2005, one of the most wrathful natural disaster to ever hit the United States raged north from the Gulf of Mexico through the states of Louisiana and Mississippi. In its wake of destruction, Hurricane Katrina with its wind, rain, and the coastal storm made a temporary negative impact on the US economy.
Hurricane Katrina nearly wiped an entire American city off the map. New Orleans, a city below the sea level, was almost drowned in its entirety due to the complete failure of the levee system designed to surround the city and protect it from the water.
The 2005 hurricane season broke all previous records as the most dangerous; Hurricane Katrina caused a $61 billion in insured losses. Something that 28 named hurricanes and tropical storms failed to do. Katrina was one of the largest and most destructive hurricanes in the history of the United States.
Insured losses from Katrina reached more than $40 billion. Surpassing Hurricane Andrew, the previous record holder that caused half the amount of damage that Katrina made. In 1992, Andrew hit South Florida that totaled more than $21 billion in insured losses in today’s dollars.