As the 2023 Atlantic Hurricane Season starts, it has been revealed that more than 33 million US properties are at risk of hurricane-force wind damage.
In its 2023 Hurricane Risk Report, leading analytics and data-enabled solutions provider CoreLogic, has identified that more than 32 million single-family residences (SFRs), as well as an additional 1 million multifamily residences (MFRs) are at moderate, or more significant risk of sustaining damage from hurricane-force winds.
According to the data, this damage could potentially have a combined reconstruction cost value (RCV) of $11.6 trillion.
Approximately 7.8 million homes, with a combined RCV of $2.6 trillion, have direct or indirect coastal exposure, therefore making them susceptible to storm surge flooding.
Elsewhere, CoreLogic has also discovered that a major amount of US metros are at greater risk for hurricane damage, with more than 4.3 million SFRs and MFRs in the New York City metro area being at risk of hurricane-force winds.
These properties, which span across New York City, Newark and Jersey City, equate to a combined RCV of $2.4 trillion at risk. Other major metro areas that have substantial hurricane wind risk are the Houston-Woodlands-Sugar Land and Miami-Ft. Lauderdale-Pompano Beach areas which have 2.1 million SFRs and MFRs, each, and a combined RCV of $649.8 and $585.0 billion, respectively.
Tom Larsen, Senior Director for CoreLogic Insurance Solutions, commented: “CoreLogic remains committed to empowering the industry with reliable insights and innovative solutions that help safeguard people, businesses and communities from the escalating impacts of climate change. Insurers and lenders should adapt to these changes by deepening their understanding of property risk, embracing proactive loss prevention measures and collaborating with stakeholders across the industry to ensure long-term resilience.”
Additionally, CoreLogic has also analysed historical data, climate patterns and predictive models in conjunction with its property database and suite of climate change models to forecast the potential impacts of hurricanes on coastal and neighboring regions by mid-century. The data heavily suggests that by the year 2050, more powerful storms, a rise in sea level and warmer atmospheric temperatures will give hurricanes a greater capacity to hold more moisture.
