IRVINE, Calif.–(BUSINESS WIRE)–September 29, 2022–
CoreLogic®, a leading global provider of property information, analytics and data-driven solutions, today announced residential and commercial wind and storm surge loss estimates from Hurricane Ian. According to this new data analysis, wind losses for residential and commercial properties in Florida are expected to be between $22 billion and $32 billion. Insured storm surge losses in Florida are expected to be between an additional $6 billion and $15 billion.
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Table 1 shows estimates of commercial and residential insured property losses by state. (Graphic: CoreLogic)
“This is the costliest storm in Florida since Hurricane Andrew made landfall in 1992 and a record number of homes and properties have been lost due to Hurricane Ian’s intense and destructive characteristics,” said Tom Larsen, Associate Vice President, Risk and Risk Management, CoreLogic. “Hurricane Ian will forever change the real estate industry and the city’s infrastructure. Insurers will go bankrupt, homeowners will be forced into delinquency, and insurance will become less accessible in places like Florida.
If the forecast holds, CoreLogic expects Hurricane Ian to continue to devastate Florida and potentially South Carolina and Georgia. Residents will experience standing water and sewer backups for days, slowing immediate recovery. Significant damage to infrastructure will also hamper the responsiveness of local governments.
The implications of Hurricane Ian’s recovery
With inflation at its highest level in 40 years, interest rates approaching 7% and demand for labor and materials still high, CoreLogic expects the recovery to be slow and difficult. Although recent legislation such as the Inflation Reduction Act aims to improve infrastructure and resilience, the real estate sector is poised to evolve. “We are at a crossroads with Hurricane Ian in terms of adapting to today’s disaster risk environment,” Larsen said. “Infrastructure and building codes will evolve so that we can be more resilient in the face of what are bound to be more historic storms in the near future. We cannot just rebuild; we must restore for resilience.
Florida’s housing market was healthier than average before Hurricane Ian, according to CoreLogic economists. “In the second quarter of 2022, Florida recorded one of the strongest real estate appreciations in the United States, averaging $100,000 in equity per owner,” said Selma Hepp, acting manager. from the Office of the Chief Economist, CoreLogic. “Florida also had the highest home price gains in July. Equity gains and record low loan-to-value ratios will provide many Florida homeowners with a financial buffer should economic conditions deteriorate, as is usually the case following natural disasters.
Learn more about Hurricane Ian loss estimates
The post-landfall estimates above have been updated based on the National Hurricane Center (NHC) storm advisory for September 29 at 8:00 a.m. This analysis includes insured losses resulting from damage to residences and commercial properties, including contents and business interruption, and does not include broader economic losses due to the storm. Ian was downgraded to a tropical storm as it crossed the Florida peninsula. However, flash flooding will be the main concern until the storm re-forms over the ocean with the potential to make landfall as a hurricane in South Carolina. As such, CoreLogic will produce flood loss estimates next week.
Visit CoreLogic’s natural hazard information center, Hazard HQ™, at www.hazardhq.com to access the most recent storm data from Hurricane Ian and view reports from previous storms.
CoreLogic offers high-resolution location information solutions with a view of hazards and vulnerabilities aligned with the latest scientific advances for more realistic risk differentiation. High-resolution storm surge modeling using a 10m digital elevation model (DEM) and PxPoint™ parcel geocoding accuracy facilitate this realistic view of risk. Single-family residential structures under four stories, including mobile homes, duplexes, manufactured homes, and cabins (among other non-traditional home types) are included in this analysis. Multi-family residences are also included. This does not mean that there will not be damage to other types of structures, as there may be damage associated with wind or debris not listed in this release.
The data provided is intended 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 CoreLogic’s prior written permission. All CoreLogic data used for publication or dissemination, in whole or in part, must be sourced from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation should directly accompany the first data reference. If the data is illustrated by maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or on the website. For questions, analysis, or data interpretation, contact [email protected] or Caitlin New at [email protected] Data provided may not be changed without prior written permission from CoreLogic. Do not use the data illegally. This data is compiled from public records, contributory databases and proprietary analysis, and its accuracy depends on these sources.
CoreLogic is a leading global provider of property information, analytics, and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes more than 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, location, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to customers through unique data, analytics, workflow technology, advisory and managed services. Customers rely on CoreLogic to identify and manage growth opportunities, improve performance and mitigate risk. Based in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.
CORELOGIC, the CoreLogic logo, Hazard HQ and PxPoint are trademarks of CoreLogic, Inc. and/or its affiliates.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220929005990/en/
CONTACT: Robin Wachner
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA FLORIDA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING AND REAL ESTATE COMMERCIAL BUILDING AND REAL ESTATE INSURANCE CONSTRUCTION AND PROPERTY FINANCE
SOURCE: CoreLogic, Inc.
Copyright BusinessWire 2022.
PUBLISHED: 09/29/2022 20:42 / DISK: 09/29/2022 20:42
Copyright BusinessWire 2022.