chuck watson, analyst, is with us. chuck, appreciate you being here, thank you. i understand it, the standard homeowners policies do not cover floods, it's separate. you have to get it -- it's a federal program, is that the only availability of flood coverage is through fema? >> good morning. yeah, there's some private insurance but it is pretty expensive and specified for the homeowner. you can still get it through the normal insurance agent, but what happened back in the '70s after a number of floods the insurance industry decided the insurance flood was too risky and too expensive so they pulled out. so the federal government stepped in. and the program has a long history of having problems, but for the consumer, the real problem is, it's kind of odd. if your roof is damaged and water comes in by rain, damages your tv, insurance covers it. if the stream next to your house overflows and damages your tv, it's not covered by your homeowners policy. you have to have the extra federally-backed program to have insurance over it. a lot of folks in north carolina and

when you look at the region at large, according to chuck watson, a disaster modeler in the u.s., thehoon could exact a toll of $50 billion for hong kong and china and $20 billion for the philippines. and this storm could see damages day, 67% ofion a the gdp for the city of hong kong. consider damages to property and cars and what it will mean for insurance payout. keeping an eye on cathay pacific which will resume flights after canceling. another worth watching, there was trained disruption. -- train disruption. stop.had a 33 our that is a big dent to revenue growth. when a typhoon hit last year, the government estimated economic loss to macau was $1.6 billion. shery: thank you. haidi: taking a look at the markets. moon jae-in has to pyongyang this week, the first to visit the north. with some of the biggest fixtures in north korea. this could define his presidency. let's go to our reporter. it is his third summit this year. his approval ratings are slipping. a lot at stake. reporter: indeed. a lot that perhaps the honeymoon phase after the impeachment of park and hey could be over -

we go to chuck watson, enki research, disaster modeler.charts, termsre we looking at in of dollar value in damage that could be done? >> good morning, it looks like this will be a 10 to $12 billion expense, that's for traditional hurricane impact, you think of things like waves, storm surge, wind, damage from trees blowing down and hitting buildings. the big question mark is the see from the can wind prediction, 30 inches of goodin places is not a thing. and because it is so slow moving, it is more reminiscent storm than a landfall hurricane. so flood damage numbers are uncertain. normally with a $12 billion $3rm, you would predict billion in flood damage, but if it stalls, we could see $15 billion of additional flood damage. which is catastrophic and creates a lot of insurance implications. david: chuck, thank you. we have a breaking news report, but this is very helpful. breaking news right now, volkswagen is said to plan a trucks ipo, spinning off its business, it depends on the marketplace but they are having hanover, butin they are ta

chuck watson from savanna. walk us through the damage overall. tell us individually by state. tough to get estimates, that is why we use computer modeling and satellite reports at this stage. florence was another strange hurricane, if it had just been a traditional storm that came and hit land and moved on, it probably would have been about $12 billion in damages, maybe $7 billion from the surge on the coast and another $5 billion in led. but we are still in the middle of the disaster and it will not dry out for a couple days, and some of the rivers may take a week to crest. so we are still in the middle of the actual event. our current estimates are it will add about $10 billion to this. it will be really close to breaking the top 10 damage storms in u.s. history. david: as you say, we have not had the cresting yet, does your $10 billion extra, does that take into account what you think is the reasonable case of the worst case? what is the over and under on this? chuck: that is if we let the water run off, the computer models stimulate this and try to figure out what the end