Insured value of coastal exposures on the rise: AIR
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Population growth along the U.S. Eastern Seaboard and Gulf Coast is driving rising coastal exposure values, which in turn is significantly escalating the total insured value of residential and commercial properties, according to a new analysis.
The population along the coast has risen nearly every year since 2000 despite the increasing risk of hurricanes, according to the Coastline at Risk analysis released Wednesday by Boston-based catastrophe risk modeling firm AIR Worldwide.
“While construction slowed considerably following the recession, housing prices and construction costs have continued to increase at a moderate pace,” the company said in a statement Wednesday.
Overall, the estimated insured value of exposure was $36.4 trillion in 2018 across the 18 analyzed states, representing a 28.5% increase from the 2012 estimate, according to the analysis, which was updated to chart the continuing growth in the total insured value of these exposed coastal properties since AIR’s last update in 2013.
The estimated insured value of exposure across coastal counties in the 18 states rose 27.2% to $13.541 trillion in 2018, according to the analysis.
New York had the highest estimated insured value of exposure among the 18 states at $6.2 trillion for the entire state in 2018 — an increase of 45.1% from the 2012 estimate — and $3.751 trillion in the coastal counties — a 28.3% rise since 2012, according to the analysis.
Texas has the second-highest estimated insured value of exposure at $6.197 trillion for the entire state in 2018 — an increase of 35.3% from the 2012 estimate — and $1.585 trillion for its coastal counties — a 34.9% rise since 2012, according to the analysis.
Florida had the third-highest estimated insured value of exposure at $4.582 trillion for the entire state in 2018 — an increase of 25.9% from the 2012 estimate — and $3.595 trillion for its coastal counties — a 25.6% rise since 2012, according to the analysis.
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