Friday, May 31, 2013

2013 Hurricane Season Is Upon Us

June 1 begins the 2013 hurricane season and the prognosticators are predicting an "active" hurricane season.  Concurrently, a recent report prepared by CoreLogic shows that New York is near the top of the list for potential storm surge damage to property.  The report entitled "CoreLogic Storm Surge Report" sets out data for residential property throughout the US and matches property values to likely damage caused by storm surges brought on by hurricanes and other tropical storms.  Coastal residences across the US in storm surge danger total $1.1 trillion in potential exposure.  Most of these homes are covered by homeowners insurance and, hopefully, flood insurance.  An active hurricane season can mean a significant insured loss for the homeowners' insurance market and another disaster for the National Flood Insurance Program.

Key highlights of the 2013 CoreLogic analysis include:
  • There are more than 4.2 million residential properties exposed to storm-surge risk valued at roughly $1.1 trillion, with more than $658 billion of that risk concentrated in 10 major metro areas.
  • Florida tops the state rankings with nearly 1.5 million properties at risk and $386 billion in total potential exposure to damage.
  • Louisiana ranks second in total properties at risk with just over 411,000 homes in storm-surge zones. New York ranks second in total value of coastal properties exposed at nearly $135 billion.
  • At the local level, the New York metropolitan area, which encompasses northern New Jersey and Long Island as well, contains not only the highest number of homes at risk for potential storm-surge damage, but also the highest total value of residential property exposed, at more than $200 billion.
The report also goes into climate change and its affect on residential coastal properties.  The scary part is that the values discussed in this report only reflect residential properties.  Add on commercial property, governmental property, and the collateral damage caused by the type of disruption that occurred in the aftermath of Sandy, the numbers increase exponentially. 

There has been a lot of rebuilding and retrofitting going on in NY and NJ and CT after Sandy.  The NYC Transit Authority just started running the A train to Rockaway (and has installed a seawall to protect the tracks from storm surge arising in Jamaica Bay).  Let's hope the efforts to rebuilt with resiliency work and that we pass the 2013 hurricane season with a minimum of harm.

No comments:

Post a Comment