CoreLogic Risk Analysis Shows Hurricane Laura Threatens 431,810 Homes with Storm Surge Damage, Shines Light on Importance of Coverage Adequacy
IRVINE, Calif.--(BUSINESS WIRE)--Aug 25, 2020--
CoreLogic ® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released data analysis showing 431,810 single-family and multifamily homes along the Texas and Louisiana coasts with a reconstruction cost value (RCV) of approximately $88.63 billion are at potential risk of storm surge damage from Hurricane Laura based on its projected Category 3 status at landfall. These estimates are based on the August 25, 8 a.m. Eastern Standard Time National Hurricane Center forecast.
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Total Number and RCV ($ in Billions) of Residential Properties at Risk of Storm Surge Damage from Hurricane Laura (Graphic: Business Wire)
As Hurricane Laura approaches the Gulf Coast, its path will become more certain and the below metropolitan areas at risk will narrow. For the most up-to-date storm surge exposure estimates, visit the CoreLogic natural hazard risk information center, Hazard HQ™, at www.hazardhq.com.
CoreLogic catastrophe and weather experts expect the 2020 hurricane season to continue on its above-average trend given warmer oceanic temperatures, which presents financial risk to homeowners and businesses in property services, like insurers and mortgage lenders. Hurricane-driven storm surge can cause significant property damage when high winds and low pressure cause water to amass inside the storm, releasing a powerful rush over land when the hurricane moves onshore.
“The coincidence of two catastrophes—a damaging hurricane season and the ongoing global pandemic—underscores the importance of the correct valuation of reconstruction cost, one of the core tenets of property insurance,” said Tom Larsen, principal, insurance solutions at CoreLogic. “Homeowners, mortgage lenders and insurers need to work together to ensure properties are fully protected and insured. CoreLogic data has found a correlation in mortgage delinquencies and catastrophes, which could point to a serious issue of underinsurance trends.”
To confirm adequate coverage, insurers must bi-annually consider cost of materials and labor, as well as demand surge, to completely rebuild a home, while homeowners must communicate frequently with their insurance agents to relay home improvement activities. Understanding property risk while ensuring adequate insurance coverage is the key to keeping homeowners and the U.S. economy strong and resilient.
For a complete view of total storm surge risk for all Atlantic and Gulf Coast states metropolitan areas, download the 2020 CoreLogic Storm Surge Report.
CoreLogic offers high-resolution location information 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 this realistic view of risk. Residential structures of up to four units, including single-family homes, mobile homes, duplexes, manufactured homes and cabins (among other non-traditional home types) are included in this analysis. Multifamily residences are also included. This is not an indication that there will be no damage to other types of structures.
The data provided are for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact [email protected]. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
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, buy and protect their homes. For more information, please visit www.corelogic.com.
CORELOGIC, the CoreLogic logo, PxPoint and Hazard HQ are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.
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CONTACT: Media Contacts:
INK Communications for CoreLogic
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: RESIDENTIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY ENVIRONMENT
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PUB: 08/25/2020 10:23 AM/DISC: 08/25/2020 10:23 AM