The area was devastated when levees collapsed during Hurricane Katrina flooding most of the city. Damage and Insurance: Hurricane Katrina cost a staggering $125 billion.Insurance covered only $80 billion of the losses, according to Swiss Re. Around 33 trillion gallons of water was left behind by the hurricane — four times the amount left by Hurricane Katrina in 2005. Arriving in late August 2005 with winds of up to 127 mph, the storm caused widespread flooding. (UPI Photo/A.J. Hurricane Katrina made landfall on August 29, 2005, in southeastern Louisiana, with maximum sustained winds of 140 mph. Hurricane Katrina At least 1,500 people were killed and around $300 billion worth of damage was caused when Hurricane Katrina hit the south-eastern part of the USA. An insurance research group says the flooding in Texas form Hurricane Harvey may match flooding from Katrina. Flooding in New Orleans caused a considerable amount of damage It Hurricane Katrina was one of the deadliest hurricanes ever to hit the United States. The destruction wrought by Katrina, and the flooding thereafter, severely damaged the roads Sisco) Former President Bill Clinton announces major grants from the Bush-Clinton Katrina fund during a visit to the University of New Orleans December 7, 2005, at the University of New Orleans. Hurricane-force winds extended outward up to 105 miles from the center of the storm. The flooding of New Orleans occurred after the worst of Hurricane Katrina's fury had been spent and the storm itself moved further north.