Tuesday, June 17, 2008
The insured value of properties in coastal areas of the United States continued to grow at an annual rate of 7 percent in the three years from 2004 through 2007. The finding comes in an updated analysis of insured coastal property values by catastrophe modeling firm AIR Worldwide. Despite the recent weakening of the real estate market in many areas, AIR says the insured value â€“ or the cost to rebuild properties â€“ has maintained an annual growth rate that will lead to a doubling of total value every decade. AIR warns that the significant increase in the number and value of exposed properties over the last decade has and will continue to contribute to increasing hurricane losses for insurers.
A couple of other takeaways: the insured value of residential and commercial properties in coastal counties of Florida and New York passed $2 trillion each, followed by Texas ($895 billion) and Massachusetts ($793 billion); due to the impact of Hurricane Katrina, the total insured value of properties in the coastal counties of Louisiana has grown at the lowest annual rate of all coastal states, at just over 2 percent; Mississippi coastal counties averaged a 5 percent annual increase, the second lowest of all coastal states. Check out related I.I.I. info.