As the country enters hurricane season from June 1 through late November, homes in New York and Miami are at the highest risk of property damage, according to a report released Wednesday. the housing research firm CoreLogic.
In all, more than 33 million homes in the United States are at risk for hurricane damage, according to CoreLogic’s annual report, which looked at the impact of hurricanes, storms, and wind risk exposure. for single-family and multi-family homes. along the Gulf and Atlantic coasts.
The report warned that property damage this season could be especially bad in these specific areas:
Homes in the New York City metropolitan area are likely to suffer the most damage, with 900,000 homes at risk of storm damage and more than four million homes at risk of wind damage, according to CoreLogic.
“You have a concentration of risk,” Tom Larsen, CoreLogic’s lead for solutions in the industry, told MarketWatch.
““We remember the Sandy Superstorm a few years ago that caused significant losses.””
In New York, there is “a lot of value,” he explained. From a high population that is concentrated in a small area, to a concentration of wealthy homes in one place, in addition to coastal exposure, there are many things that make New York vulnerable, Larsen said.
“We remember the super-storm Sandy a few years ago that caused significant losses, even though it wasn’t even a hurricane,” Larsen added.
Sandy caused damage of approximately $ 19 billion and lost economic activity in New York, according to the city. More than 69,000 residential units were damaged and thousands of New Yorkers were displaced.
The total cost of reconstruction if a hurricane is high. CoreLogic expects the value of the cost of rebuilding to be nearly $ 433 billion for homes damaged by storm surges, and more than $ 2.2 trillion for wind damage.
Miami homes rank second in terms of the highest risk of damage, with 770,000 homes at risk of storm damage and two million more homes at risk of wind damage. Homes damaged by storm surge would cost nearly $ 193 billion in reconstruction value, while homes affected by hurricane winds would cost $ 521 billion.
When it comes to states that may see the most damage from hurricanes, Florida, Louisiana and Texas top the list.
If you own a home, given the risks of the hurricane, “make sure you have adequate insurance,” Larsen stressed. “It’s a big, big financial expense,” he said if you can’t get home because of inadequate insurance.
“Financial Trauma” for owners
According to the report, more than 31 million single-family homes and 1 million more homes in multi-unit buildings were at moderate or greater risk of the hurricane’s damaging winds.
More than 7.5 million of these homes had direct or indirect exposure to the coast and therefore the risk of coastal storm surges and hurricane damage.
Property damage caused by hurricanes entails significant economic losses for homeowners.
“Many homeowners experienced ongoing financial trauma,” the CoreLogic report said. For example, after Hurricane Ida became a Category 4 storm before it hit land in Louisiana and flooded many homes, many homeowners were far behind in mortgage payments.
The percentage of homeowners who were at least three months behind in payments in the city of Houma, La., Increased by 50%. Six months later, the serious default rate was still above the state average.
Climate change is one of the key factors that makes storms more intense and broader in scope.
“Especially severe” hurricane season ahead
And if you think 2021 was bad, get ready for a tumultuous 2022, the report said.
Last year, the Atlantic hurricane season was the third most active on record. There were 21 named storms that caused $ 80 billion in damage, ending up being the third most expensive in history. Hurricane seasons in 2005 and 2017 caused more havoc.
“This hurricane season could be especially severe for the U.S. Gulf Coast due to warmer-than-average temperatures in the Atlantic Ocean, an ongoing La Niña and a stronger-than-average loop current in the U.S. Gulf of Mexico, ”Daniel Betten, chief meteorologist at CoreLogic. , he said in a press release.
“While La Nina events usually take place once every three years, this fall will probably be the fifth La Nina event in the last seven years.”
Write to MarketWatch journalist Aarthi Swaminathan: email@example.com