e, the level of devastation that the natural disaster leaves behind determines the level of repair and reconstruction that occurs.
A single natural disaster can also leave a variety of damage in its wake. For example, Hurricane Andrew leveled much of Homestead, Florida, but did considerably less damage to the city of Miami. Even in areas that are hardest hit, some residents and businesses manage to survive intact while others are completely lost.
Besides communication problems, transportation can be a problem in natural disasters, making it difficult to move goods into or out of a disaster area. In some cases, roads are simply destroyed, while in other cases, airports, railroads and major routes into the area suffer varying degrees of damage. This not only makes it difficult for rescue workers and those offering immediate assistance to get to the area, but it places an additional economic burden on the area in terms of capital requirements for rebuilding.
If an area is hit particularly hard, an area's entire infrastructure can be destroyed. This includes not only transportation and communications, but also schools, hospitals and most housing. In these cases, some people may choose to rebuild, but a number of individuals may lack the resources to do so. Disasters that leave a wide area damaged also inhibit the ability of local governments to offer assistance because the need is so great.
The federal government has established the Federal Emergency Management Agency (FEMA) to offer assistance in these situations, and the Small Business Administration (SBA) offers low-interest loans to businesses who want to rebuild after disaster strikes. In addition, many companies and individuals purchase catastrophe insurance appropriate for the area in which they live, and rely on benefits from that insurance to give them the resources they need in order to rebuild their communities.
It is the insurance companies which can suffe...