Recent Flood Will Have Long-Term Effects

Begelfer says many developers and businessmen north of Boston were forced to arrange phone conference or cancel meetings following the storm because they were unable to navigate flooded streets. It was too premature to determine the extent of damage to area buildings caused by the storm, he adds.

Gov. Mitt Romney anticipates damage claims will surpass the $7 million threshold required for federal aid. "This is a level of crisis which is beyond anything these communities have ever experienced from water in their history," he said shortly after declaring a state of emergency. Governors from Maine and New Hampshire also issued a state of emergency and said they will call on the National Guard to help in the cleanup.

Throughout the Merrimack Valley, raging flood waters ravaged area buildings. In Peabody, much of the city's downtown was covered by the floodwaters while in Lawrence, sewage filled water spilled over the banks of the Merrimack River, spewing into nearby development projects built along the river's edge.

Andrew Castaldi, head of the Catastrophe and Perils Unit with Swiss Re Americas Division, tells GlobeSt.com that many property owners in the region don't have private flood insurance to cover the damage and few hold federal flood insurance policies. In fact, says Castaldi, the number of people who purchase federal flood insurance is generally less than 5%.