A steady rise in the number and value of exposed properties along the U.S. Gulf and East Coasts continues Ã¢â‚¬“ and remains the largest factor increasing the hurricane risk of property insurers today, according to catastrophe modeling firm AIR Worldwide.
AIR just released an updated version of its report The Coastline at Risk, showing that the insured value of residential and commercial properties (the replacement value or cost to rebuild) in coastal counties now exceeds $10 trillion.
In coastal counties of Florida and New York, values approach $3 trillion in each state.
In the past five years, the insured value of properties in coastal areas of the United States increased at a compound annual growth rate of just under 4 percent. Indications are that, as the economy recovers, the rate of growth will pick up. At a historical rate of 7 percent, the total values insured would double every decade.Ã¢â‚¬
Overall, AIR estimates that some 38 percent of the total exposure in Gulf and East coast states is located in coastal counties. This exposure accounts for nearly 16 percent of the total value of properties in the U.S.
New York edges Florida as the state with the highest coastal property values, at over $2.9 trillion, but Florida has the largest proportion of its value in coastal counties at 79 percent.
More on this story from Claims Journal.
Check out additional facts and statistics from the I.I.I. on hurricanes.