The very latest report from CoreLogic is here – and it includes some interesting projections on 2018 hurricane season and the cost of reconstruction.
According to the report release on May 31, more than 6.9 million homes along the Atlantic and Gulf Coasts are at risk of being damaged by a hurricane or its remnants this year. With that comes a projected reconstruction cost of $1.6 trillion, which is up 6.6 percent from 2017. CoreLogic says the cost increase is due to “higher regional construction, equipment, and labor costs.” The report examines the risk of damage across 19 states and 96 metropolitan areas. By region, the Atlantic Coast faces more danger than the Gulf Coast. According to the report, the Atlantic Coast has almost four million homes at risk of storm surge, with an estimating reconstruction value of more than $1 trillion, up about $30 billion … or 33 percent … from 2017. Meanwhile, the Gulf Coast has about three million homes at risk, which could result in more than $609 billion in damage, an increase of $16 billion from 2018.
Of the 6.9 million homes in the “risk” zone, more than 800,000 face extreme risk of being affected by a hurricane, and another 2.5 million are at extremely high risk. Not surprising, Florida took first place in states at the highest risk, by a long shot. Miami sits at the top of metro areas most at risk of storm surge damage when thinking about the total number of homes affected. However, which New York City has fewer homes at risk, the estimating cost of rebuilding New York City after a major hurricane is nearly double the Miami estimates.
Interestingly, when it comes to Florida, industry consultant John Capponi, CR, shared his views on the Florida restoration landscape in the cover article of the April issue of R&R.
“When you take a “deep dive” into the property damage caused by Hurricane Irma, and the hurricanes of 2004 and 2005 in Florida, I believe most stakeholders will surface with a unique perspective on the impact those events are having on the P&C insurance market and the mitigation and reconstruction industry,” Capponi wrote. “It is my belief that the State of Florida is a harbinger of what is going to come for other states, sooner than later. I will provide you with a few strategies that need immediate integration and implementation in your business model.”
CoreLogic and Capponi aren’t the only ones talking about what’s ahead for the disaster restoration industry, hurricane season, and specifically the Florida Panhandle.
In late March, R&R published a report by Global Weather Oscillations (GWO), that predicted 2018 will have the strongest hurricane cycle in 70 years. This came after they accurately predicted the Atlantic’s “hyperactive” 2018 season, and the correct number of named storms and hurricanes.
With predictions like these shedding light on what’s potentially on the horizon for disaster restoration contractors, it is critical for restorers to be ready to respond if they choose.
This fall, R&R is debuting a conference designed to help restoration contractors effectively respond to catastrophe-related events. Backed by some of the biggest suppliers and vendors in the industry, Preparing to Respond’s agenda covers the full gamut of topics related to winning at CAT work, with top experts in the industry talking about estimating, drying, business planning, logistics, odor removal, mass trauma cleanup, and so much more.
