Derecho cost Cedar Rapids businesses $133 million, half not covered by insurance
CEDAR RAPIDS, Iowa (KCRG) - Half of the approximate $133.4 million of damage Cedar Rapids businesses sustained in the August 10th derecho was not covered by insurance, according to a City of Cedar Rapids survey.
The city presented those findings at Tuesday’s City Council meeting as an overview of the impact of the storm, which does not include losses by the government or individuals. The 2020 derecho that tore across Iowa and other Midwest states is the most costly natural disaster in U.S. history with an estimated $10 billion in losses.
Property damage made up the bulk of the losses, totalling $69 million. Lost sales made up another large chunk, adding up to an estimated $41 million. More than half of businesses in Cedar Rapids were closed for a week or more after the derecho hit, 32% were closed 2 weeks or more. The survey found industries already hard hit by the COVID-19 pandemic - tourism, retail and dining - were the hardest hit by the storm.
On the positive side, of the 112 businesses that responded to the survey, just 15% planned job cuts in 2020 due to the storm losses.
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