CoreLogic: 2M Homes in 4 States at Risk for Storm Surge Damage, Insurers Brace for Matthew’s Impact

October 6, 2016

As insurers brace for the aftermath of Hurricane Matthew, CoreLogic has issued new analysis projecting almost 2 million homes in four states could sustain damage from hurricane-driven storm surge flooding.

GEICO announced it was assigning catastrophe teams and would take claim reports via its mobile app or its call center. CNA announced its Catastrophe Operations Center in Colorado is fully operational and capable of managing claims. CNA was accepting claims via email, phone and fax and through its website.

According to a statement issued by Allstate, a conference room at it’s Northbrook, Ill., headquarters looked more like a command center Tuesday, as more than 50 catastrophe team leaders met to map the strategy and response in preparation for the potential impact of Hurricane Matthew.

Allstate claim personnel turn conference room into command center to prep for approaching storm.
Allstate claim personnel turn conference room into command center to prep for approaching storm.

Allstate is deploying pre-storm teams of adjusters, catastrophe personnel and as many as four mobile claim centers. The teams are staging in locations along the East Coast, including Tallahassee, Fla. and Greenville, S.C. Those staging cities could change as the path of Matthew changes.

“The key is to select staging locations that are safe for our catastrophe team members to ride out a storm, positioning us to respond quickly to our customers and areas with damage,” said Mark McGillivray, senior vice president, Allstate Claims.

Hurricane Matthew is expected to make landfall in the next 24-48 hours. CoreLogic, a global property information and analytics provider, released analysis howing potential exposure to residential property damage from hurricane-driven storm surge flooding as Hurricane Matthew makes its way toward the U.S. Atlantic Coast.

Figure 1 shows the total number of properties at risk of storm surge damage for each of the five hurricane categories. In addition, the accompanying reconstruction cost value (RCV) is provided.

Figure 1: Total Number and Total Value of Residential Properties by State
State At-Risk Homes Cat 1 Cat 2 Cat 3 Cat 4 Cat 5
Florida Homes at Risk by Cat Level 124,764 234,211 303,501 291,918 307,913
Total Homes at Risk 124,764 358,975 662,476 954,394 1,262,307
RCV by Cat Level $24B $50B $60B $54B $57B
Total RCV $24B $74B $134.8B $188.9B $246.3B
South Carolina Homes at Risk by Cat Level 35,514 88,485 81,039 82,177 51,425
Total Homes at Risk 35,514 123,999 205,038 287,215 338,640
RCV by Cat Level $10B $22B $17.9B $17B $10B
Total RCV $10B $32B $50B $67.6B $77.7B
North Carolina Homes at Risk by Cat Level 30,785 58,829 62,456 46,086 46,556
Total Homes at Risk 30,785 89,614 152,070 198,156 244,712
RCV by Cat Level $5.9B $11.8B $12.6B $9.5B $9.3B
Total RCV $5.9B $17.6B $30.2B $39.7B $49B
Georgia Homes at Risk by Cat Level 9,290 41,003 53,398 34,272 10,755
Total Homes at Risk 9,290 50,293 103,691 137,963 148,718
RCV by Cat Level $2.8B $10.2B $10.7B $6.4B $1.9B
Total RCV $2.8B $13B $23.7B $30.1B $32B
Spotlight on Florida Metropolitan Areas
Metro Area At-Risk Homes Cat 1 Cat 2 Cat 3 Cat 4 Cat 5
Daytona Beach Homes at Risk by Cat Level 2,356 19,640 36,052 38,650 16,489
Total Homes at Risk 2,356 21,996 58,048 96,698 113,187
RCV by Cat Level $582M $4.3B $7.0B $7.5B $3.8B
Total RCV $582M $4.9B $12B $19.4B $23.2B
Melbourne Homes at Risk by Cat Level 10,623 23,337 20,673 14,212 12,880
Total Homes at Risk 10,623 33,960 54,633 68,845 81,725
RCV by Cat Level $2.3B $4.8B $3.9B $2.7B $2.2B
Total RCV $2.3B $7.2B $11B $13.7B $16B
Miami Homes at Risk by Cat Level 75,903 130,463 176,225 193,465 204,426
Total Homes at Risk 75,903 206,366 382,591 576,056 780,482
RCV by Cat Level $12.7B $26.1B $35B $34.2B $36B
Total RCV $12.7B $38.7B $73.8B $108B $143.9B
Jacksonville Homes at Risk by Cat Level 8,700 26,729 50,992 31,976 48,312
Total Homes at Risk 8,700 35,429 86,421 118,397 166,709
RCV by Cat Level $2B $7B $10B $6.5B $10B
Total RCV $2B $9.3B $19.3B $25.8B $35.9B

Hurricane-driven storm surge flooding can cause significant property damage when high winds and low pressure cause water to amass inside the storm, releasing a powerful rush over land when the hurricane moves onshore. This CoreLogic analysis measures exposure to damage from storm surge and does not include potential damage from wind and rain associated with hurricanes.

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