The heavy commercial and industrial areas of Port Arthur and Beaumont -- with their numerous refineries -- were to the left of the storm's track, where wind speeds are lower, so we do not expect to see significant structural damage to the refineries.

We may see Beaumont and Port Arthur underwater for three, four, five or even seven days.

It's much weaker, but the size of the storm tends to grow. Even a category 3 could cause $25 billion in damage.

We expect to see significant damage to residential and commercial properties near and to the east of Rita's track. Fortunately, the heavy commercial and industrial areas of Port Arthur and Beaumont — with their numerous refineries — were to the left of the storm's track, where wind speeds are lower, so we do not expect to see significant structural damage to the refineries.

If it came ashore in a rural area, it could be just a few billion dollars. It [insured loss] is very sensitive to where it actually makes landfall.

If it came ashore in a rural area, it could be just a few billion dollars. It (insured loss) is very sensitive to where it actually makes landfall.