7.4M homes at risk of storm surge this hurricane season amidst economic turmoil

Forecasts for a severe hurricane season add another considerable financial threat for homeowners in 2020.

It’s officially hurricane season, and this year is forecasted to experience severe levels of storm activity.

Aside from wind and precipitation, one of the biggest threats posed to properties by hurricanes is the storm surge that creates devastating inland flooding in affected areas.

Storm surge is defined as the abnormal rise in seawater level during a storm, measured as the height of the water above the normal predicted astronomical tide. The surge is primarily caused by a storm’s winds pushing water onshore.

New data from CoreLogic takes a closer look at storm surge risk for this year’s hurricane season, presenting their research findings in their recently released 2020 Storm Surge report.

Storm surge risk by Category and home type

For the 2020 report, CoreLogic researchers analyzed the national risk levels for single-family residences (SFR) and multifamily residences (MFR) in the U.S. at risk of storm surge.

In 2020, CoreLogic asserts approximately 7,110,779 SFRs and 252,657 MFRs are at risk of storm surge. The cost to rebuild a house from complete destruction, aka its “reconstruction cost value” (RCV), tops $1.7 trillion for SFRs and $95 billion for MFRs.

The findings, detailed in the chart below, represent the number of homes at potential risk (not the actual number affected by hurricane activity).

CoreLogic looked at the top 15 metropolitan areas with the greatest number of SFR and MFR homes at risk for storm surge. These areas account for 68.8% of the total RCV of storm surge risk in the United States in 2020.

The New York metropolitan area was found to have the greatest risk of storm surge, CoreLogic reports, with over 834,600 homes at risk and the highest total RCV at over $334 billion.

The Miami, Florida metro area that includes Miami, Fort Lauderdale and West Palm Beach, Florida follows the New York metro area with more than 834,500 homes at risk and an RCV of $166 billion, according to the report.

At a state level, Florida, Louisiana, New York and Texas have the greatest number of homes at risk of storm surge.

Disaster checklist: Preparing for floods and wildfires

Use these checklists to help insureds prepare for the wildfire and hurricane seasons.

Every year, insurance departments recommend the ways consumers can prepare for various disasters — they may suggest purchasing flood insurance in susceptible areas or offer ways to mitigate fire hazards, in addition to other tips. This year is different; the presence of COVID-19 makes any evacuation more complicated than normal.

Flood Questionnaire

Leave a Reply Cancel reply

Risk Management

Mitigating Financial Losses During Hurricane Season: A Skyscraper Insurance Guide

As hurricane season approaches, businesses must take proactive steps to safeguard against financial losses. At Skyscraper Insurance, we understand the unique challenges companies face in times of disaster, and we’re committed to helping our clients navigate them successfully. Here’s how your business can mitigate financial risks with the right strategies and support. 1. Diversifying Income Streams for Resilience A diversified revenue model is crucial to withstanding the disruptions caused by hurricanes. Skyscraper Insurance works with businesses to evaluate new opportunities—whether it’s launching an online platform, expanding services, or entering new markets. This ensures that if one revenue stream is impacted, others can sustain the business. 2. Comprehensive Insurance Coverage The first line of defense is making sure your insurance policies are up to date and cover potential hurricane-related damages. Skyscraper Insurance specializes in providing tailored insurance solutions, including business interruption coverage, property damage, and flood insurance, to protect our clients against catastrophic financial losses. 3. Creating a Contingency Plan with Experts In partnership with Skyscraper Insurance, businesses can develop disaster contingency plans that ensure operations continue smoothly, even in the face of supply chain delays or power outages. We help you establish backup solutions, such as alternate suppliers or inventory management systems, minimizing financial fallout. 4. Maintaining a Recovery Fund Skyscraper Insurance advises its clients to maintain a recovery fund, ensuring fast access to resources for repairs, inventory restocking, and other unforeseen costs. This proactive approach enables businesses to get back on their feet quickly without waiting for loans or insurance claims to process. 5. Leveraging Government Aid and Local Resources In the aftermath of a hurricane, government aid can be crucial for businesses. We assist our clients in navigating grants, low-interest loans, and tax breaks available through local and federal disaster relief programs, ensuring that financial recovery is swift. 6. Risk Management Strategies At Skyscraper Insurance, we provide businesses with customized risk management strategies designed to reduce vulnerabilities and protect financial stability. From evaluating potential hazards to implementing risk-transfer solutions, we help you mitigate loss before a disaster strikes. 7. Ensuring Proper Documentation for Claims Keeping detailed financial records is essential for filing accurate and timely insurance claims. We help clients organize and maintain critical documents that streamline the claims process, ensuring a quicker recovery period. Skyscraper Insurance: Your Partner in Resilience While hurricanes can be unpredictable, your business doesn’t have to face them alone. At Skyscraper Insurance, our commitment goes beyond coverage; we provide expert guidance and comprehensive risk management services that empower businesses to stay strong and resilient during hurricane season.

Safety Tips

How Natural Disasters Impact Supply Chains: Lessons from Hurricanes

Natural disasters like hurricanes wreak havoc on supply chains, causing major disruptions that can affect business operations for weeks or even months. For businesses, it’s critical to understand how these disruptions occur and to take steps to mitigate them. At Skyscraper Insurance, we help our clients navigate these challenges with smart risk management strategies that protect their bottom line. Here’s how hurricanes impact supply chains and what businesses can do to prepare. The Impact of Hurricanes on Supply Chains Hurricanes affect supply chains in several key ways: Minimizing the Impact: Strategies for Business Resilience While hurricanes are unpredictable, businesses can minimize their impact on supply chains through proactive planning: Inventory and Distribution Strategies Hurricanes often lead to localized supply shortages in the regions directly affected, but businesses that rely on global supply chains must also be wary of broader impacts. Global markets can feel the ripple effects as businesses look for alternative suppliers or routes, which might drive up costs and delay deliveries. Supporting Employees and Customers Beyond the logistical impact, hurricanes also bring safety risks to employees and customers. Ensure that safety plans are in place, including clear evacuation procedures and communication strategies. For employees working in distribution or warehouses, it’s essential to prioritize their well-being by closing operations in unsafe conditions and providing post-storm recovery support. Final Thoughts Supply chains are the backbone of many businesses, but they are also vulnerable to the unpredictable forces of nature. By diversifying suppliers, investing in technology, and planning ahead, businesses can minimize the disruption caused by hurricanes and other natural disasters. At Skyscraper Insurance, we’re here to help our clients protect their supply chains and navigate the challenges posed by these extreme events.

7.4M homes at risk of storm surge this hurricane season amidst economic turmoil