You are correct that insurance companies will pull most of their payout funds from other areas (definitely a net loss globally). However, not all losses are insured, and not all insurance funds will be spent locally. Some of the insured will take the money and leave. And the insurers will make up for their payouts with rate increases that will drain money from the area. Nor is the economic disruption limited to “this week.” All of the effort that goes into rebuilding over the next several years — the arguing with insurance companies, the permit processes, hiring contractors, etc. — is a diversion for the homeowners. Some of that (all the overhead for dealing with insurers and government) is pure loss with no net production. If you focus narrowly enough, you can find “winners,” but even with a temporary inflow of insurance money, I doubt the long-term result will be a net gain for the region.