According to the latest estimates from CoreLogic, wind losses for residential and commercial properties in Florida as a result of Hurricane Ian are expected to be between $22 billion and $32 billion, while insured storm surge losses in Florida are expected to be an additional $6 billion to $15 billion. The current death toll, according to CNN, was at least 21 deaths reported in Florida as of Friday morning.
“This is the costliest Florida storm since Hurricane Andrew made landfall in 1992 and a record number of homes and properties were lost due to Hurricane Ian’s intense and destructive characteristics,” said Tom Larsen, Associate VP of Hazard & Risk Management for CoreLogic. “Hurricane Ian will forever change the real estate industry, and city infrastructure. Insurers will go into bankruptcy, homeowners will be forced into delinquency, and insurance will become less accessible in regions like Florida.”
According to CNN, Hurricane Ian has regained strength to a Category 1 storm in the Atlantic Ocean, and was barreling toward South Carolina with winds of 85 miles per hour as of 8:00 a.m. ET Friday, and expected to barrel onward northbound through the central region of North Carolina, tracking toward the Greensboro area by 1:00 p.m. ET Saturday afternoon. Residents will experience standing water and sewer backups for days, slowing immediate recovery, as significant infrastructure damage will also impede local governments’ ability to respond.
CoreLogic anticipates recovery from the damage inflicted by Ian will be slow and difficult, as inflation hits at a 40-year high, mortgage rates nearing the 7%-mark, and labor and materials still high in demand.
“We’re at a crossroads with Hurricane Ian in terms of adapting to today’s catastrophe risk environment,” added Larsen. “Infrastructure and building codes will evolve so that we can be more resilient ahead of what are bound to be more history-making storms in the near future. We cannot just rebuild; we need to restore for resilience.”
Prior to Hurricane Ian making landfall in Florida, the state’s real estate market was healthier than average, according to CoreLogic economists.
“In Q2 of 2022, Florida posted one of the highest home equity gains in the U.S., with an average of $100,000 in equity per homeowner,” said Selma Hepp, Interim Lead of the Office of the Chief Economist, CoreLogic. “Florida also had the highest home price gains in July. Gains in equity and record declines in loan-to-value ratios will provide many Florida homeowners with a financial buffer in case economic conditions worsen, as is typically the case following natural catastrophes.”
Visit CoreLogic’s natural hazard risk information center, Hazard HQ, at www.hazardhq.com for more information.