7.3 Million Homes at Risk of 2019 Hurricane Storm Surge Damage with $1.8 Trillion in Potential Reconstruction Costs, According to CoreLogic Report

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    • New York City and Miami metropolitan areas have greatest risk of
      storm surge
    • Atlantic Coast contains 57% of the total homes at risk of storm
      surge flooding

    IRVINE, Calif.–(BUSINESS WIRE)–CoreLogic® (NYSE: CLGX), a leading global property
    information, analytics and data-enabled solutions provider, today
    released its 2019
    CoreLogic Storm Surge report
    , which shows more than 7.3 million
    single- and multifamily homes along the Gulf and Atlantic Coasts have
    the potential for storm surge damage, with a total estimated
    reconstruction cost value (RCV) of nearly $1.8 trillion. Early
    predictions
    from the National Oceanic and Atmospheric Administration
    (NOAA) indicate a near-normal year for the 2019 Atlantic hurricane
    season.


    The CoreLogic Storm Surge report provides an annual evaluation of the
    number of homes in the United States that are vulnerable to storm surge
    in the Gulf of Mexico and Atlantic Basin, which includes every state
    from Texas to Maine, approximately 3,700 miles. The report also includes
    associated RCV of these properties, which is calculated using the
    combined cost of construction materials as well as equipment and labor.
    The analysis examines risk across 19 states and 85 Core-Based
    Statistical Areas (CBSA). This is the first year the Storm Surge report
    analysis includes multifamily structures, which encompass apartments,
    condominiums and multi-unit dwellings.

    “It is essential to understand and evaluate the total hazard exposure of
    properties at risk of storm surge prior to a hurricane event, so
    insurers can better protect and restore property owners from financial
    catastrophe,” said Dr. Tom Jeffery, senior hazard scientist at
    CoreLogic. “Damage from storm surge and inland flooding has proven to be
    far more destructive than wind in recent years, so we cannot rely on the
    hurricane category alone to give us a sense of the potential loss. A
    Category 5 hurricane in an area with few structures may be far less
    devastating than a Category 1 hurricane in a densely populated area.”

    Regional Implications

    • The Atlantic Coast contains 57% of the total homes at risk of storm
      surge flooding and 62.7% of the total RCV. The region has more than
      4.1 million homes at risk of storm surge with an RCV of over $1.1
      trillion.
    • Conversely, the Gulf Coast contains 43% of the homes at risk and 37.3%
      of the total RCV. The region has nearly 3.1 million homes at risk with
      over $668 billion in potential exposure to total destruction damage.

    State Implications

    • Florida, Louisiana, New York and Texas have the greatest number of
      homes at risk of storm surge.
    • Florida has the most exposure to storm surge flooding, with more than
      2.9 million homes at risk. The state also has the highest RCV at over
      $603 billion.
    • Louisiana has the second most exposure to storm surge flooding, with
      more than 847,000 at-risk homes and the third highest RCV at over $202
      billion.
    • In New York, the density of the residential population near the coast
      makes it extremely vulnerable to flooding despite less frequent
      hurricane events. New York ranks third in the number of homes at risk
      (over 564,000) and second in RCV (over $240 billion).
    • Texas ranks fourth with more than 561,000 at-risk homes. Texas has the
      fifth-highest RCV with more than $113 billion.

    Metro Implications

    CoreLogic looked at 85 Core-Based Statistical Areas (CBSA) to determine
    the metropolitan areas with the greatest number of homes exposed to and
    the highest RCV from storm surge flooding.

    • The New York, Newark and Jersey City metro area has the greatest risk
      of storm surge with just over 831,000 homes at risk and RCV of over
      $330 billion. Although this number of homes at risk is similar to that
      of the Miami metro area, the RCV for these homes is double Miami’s
      metro area RCV.
    • The Miami, Florida metro area that includes Miami, Fort Lauderdale and
      West Palm Beach, Florida follows the New York metro area with more
      than 827,000 homes at risk and an RCV of $166 billion.
    • Because of the density of residences in large metro areas, the top 15
      CBSAs account for 67.5% of the total number of homes at risk and 68.9%
      of the total RCV for storm surge risk in the United States. This
      underscores the importance of considering location of future storms
      when assessing the potential for catastrophic damage.

    Important notes regarding definitions:

    Single-family and multifamily homes are provided in separate charts and
    categorized by level of exposure to storm surge hazard from Categories 1
    through 5 hurricanes. RCV figures represent the cost to completely
    rebuild a property in case of damage assuming the worst-case scenario at
    100% destruction. For more information about this data and what to
    expect from CoreLogic hurricane season reporting, contact us at newsmedia@corelogic.com
    to get access to a recorded pre-season media-only webinar.

    Note: These numbers are cumulative. A home being affected by a
    Category 1 storm would accordingly also be affected by a Category 5—so
    the highest Category represents the aggregate total.

    Methodology

    The analysis in the 2019 CoreLogic Storm Surge Report encompasses
    single-family residential structures less than four stories, including
    mobile homes, duplexes, manufactured homes and cabins (among other
    non-traditional home types). And, for the first time, the report also
    encompasses multifamily structures, which include apartments,
    condominiums and multi-unit dwellings. It is important to note that the
    inclusion of high-rise residential units such as those listed above may
    skew both the numbers associated with storm surge risk. This is because
    lower-level units are most likely to be affected, whereas the units
    above the second floor will rarely, if ever, experience storm surge
    flood damage.

    Year-over-year changes between the number of homes at risk and the RCV
    can be the result of several variables, including new home construction,
    improved public records, enhanced modeling techniques, fluctuation in
    labor, equipment and material costs and even a potential rise in sea
    level. Indeed, this year’s addition of new data in the form of
    multifamily structures has increased the total number of structures at
    risk. For that reason, direct year over year comparisons should be
    warily considered. To estimate the value of property exposure of
    single-family residences, CoreLogic uses its RCV methodology, which
    estimates the cost to rebuild the home in the event of a total loss and
    is not to be confused with property market values or new construction
    cost estimation. Reconstruction cost estimates more accurately reflect
    the actual cost of damage or destruction of residential buildings that
    would occur from hurricane-driven storm surge, since they include the
    cost of materials, equipment and labor needed to rebuild. These
    estimates also factor in geographical pricing differences (although
    actual land values are not included in the estimates). The values in
    this report are based on 100% percent (or “total”), destruction of the
    residential structure. Depending on the amount of surge water from a
    given storm, there may be less than 100% damage to the residence, which
    would result in a lower realized RCV.

    To evaluate storm surge risk at the local level, CoreLogic uses the
    designation of Core-Based Statistical Areas (CBSAs), which are often
    referred to as metropolitan areas (>50,000 people), or micropolitan
    areas (

    The high-resolution, granular modeling for underwriting individual risk
    allows enhanced understanding of the risk landscape and damage
    potentials. CoreLogic offers high-resolution solutions with a view of
    hazard and vulnerability consistent with the latest science for more
    realistic risk differentiation. The high-resolution storm surge modeling
    using 10m digital elevation model (DEM) and parcel-based geocoding
    precision from PxPoint™ facilitates a realistic view of the
    risk.

    The probabilistic CoreLogic North Atlantic Hurricane Model, which can be
    accessed in the catastrophe modeling platform RQE®, is
    powered with unparalleled property data from CoreLogic. The combination
    of high-quality data and detailed modeling provides realistic and
    credible view of the potential risk to make informed business decisions,
    understand risk and accelerate recovery.

    About CoreLogic

    CoreLogic (NYSE: CLGX), the leading provider of property insights and
    solutions, promotes a healthy housing market and thriving communities.
    Through its enhanced property data solutions, services and technologies,
    CoreLogic enables real estate professionals, financial institutions,
    insurance carriers, government agencies and other housing market
    participants to help millions of people find, acquire and protect their
    homes. For more information, please visit www.corelogic.com.

    CORELOGIC, the CoreLogic logo, RQE and PXPoint are trademarks of
    CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the
    property of their respective owners.

    Contacts

    Media Contacts:
    Alyson Austin
    CoreLogic, Corporate
    Communications
    949-214-1414
    newsmedia@corelogic.com

    Caitlin New
    INK Communications for CoreLogic
    512-906-9103
    corelogic@ink-co.com