U.S. homes at risk for trillions in damages this hurricane season
Recent analysis from a global property information provider took an in-depth look at the risk of U.S. homes in the current hurricane season -- and the results were startling.
Yesterday, June 1, marked the official start of the 2016 hurricane season, and the National Oceanic and Atmospheric Administration (NOAA) predictions called for a 45 percent chance of a near-normal season. The Atlantic hurricane season officially runs from June 1 to November 30.
But, despite, the "normal" forecast from the NOAA, property analytics firm CoreLogic determined from its analysis that more than 6.8 million homes on the Atlantic and Gulf coasts of the U.S. are at risk of hurricane damage this season. Not only did CoreLogic's 2016 Storm Surge Report conclude that nearly 7 million U.S. homes are at risk, but the total reconstruction cost value is in the neighborhood of $1.5 trillion.
— NOAAHurricaneHunters (@NOAA_HurrHunter) June 1, 2016
Worst-case scenarios at 100-percent destruction
CoreLogic determined reconstruction cost value using a "worst-case scenario at 100-percent destruction" model, the $1.5 trillion sum is obviously at the high end of the spectrum. According to the report, the 2016 analysis overall resulted in increases over 2015 in both total number of homes at risk, as well as the total reconstruction value of the at-risk homes.
According to CoreLogic, the Atlantic Coast has more at risk than the Gulf Coast.
For this current hurricane season, the Atlantic Coast has approximately 3.9 million homes at risk, with a potential reconstruction value of approximately $953 billion in total, while the Gulf Coast has approximately 2.9 million homes at risk with a total possible price tag of $592 billion in reconstruction costs due to storm damage.