CoreLogic’s Climate Change Catastrophe Report said natural disasters hit one if 10 of us in 2021. That totals up to 14.5 million single and multi-family homes. Property damage to those homes was $56.92 million.
Company spokesman, Tom Larson said the report came to that total by looking at 13 major and severe weather events and 120 million residential structures. Once those facts were entered, CoreLogic totaled the cost of reconstruction, or the cost of repair, in terms of materials, equipment and labor.
“By leveraging granular data for the increasing frequency and severity of catastrophes, we are able to see that more than 14.5 million homes were impacted to some degree by natural hazards in 2021,” he said. “That’s about one in every 10 homes in the United States. Insurers and lenders can leverage the latest technologies and work cross-functionally to better understand this risk, protect homeowners and enable faster recovery times.”
He said the risk factors of natural hazard events have pushed costs for insurers and homeowners in many areas of the country. Larson gave California as an example. He said between 2017 and 2020, the cost of fire and homeowners insurance rose from $8.7 billion to $11.1 billion.
That’s an increase of 27%.
Larson then broke the report down into four categories: wildfire, hurricanes, severe weather and winter storms.
Wildfires caused $1.46 billion in property damage. Over 4,000 homes were hit and the reconstruction costs hit $0.73 billion.
Hurricanes did $33 billion in damages. Reconstruction costs to 1,233,860 homes was $395 billion.
Severe weather reconstruction cost value was $124 billion. The 563,637 homes saw $7.46 billion in property damage.
Winter storms did $15 billion in property damage. Reconstruction value for the 12,764,941 homes was $2.27 trillion.
“Nearly every property in the U.S. has exposure to hazard risk, and the effects of a catastrophic event can result in an unstable economy with high levels of unemployment and mortgage delinquency,” the report concluded.
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