The Coastline at Risk: 2008 Update to the Estimated Insured Value of U.S. Coastal Properties

The significant increase in the number and value of properties exposed to hurricanes over the last decade has contributed — and will continue to contribute — to increasing hurricane losses for insurers. In particular, properties along the U.S. Gulf and East Coasts face the most danger. This publication explores the phenomenon and provides data on the insured value of coastal properties.

Challenge
The significant increase in the number and value of properties exposed to hurricanes over the last decade has contributed — and will continue to contribute — to increasing hurricane losses for insurers. In particular, properties along the U.S. Gulf and East Coasts face the most danger. This publication explores the phenomenon and provides data on the insured value of coastal properties. 

Results
publication data shows that the insured value of properties in coastal areas has maintained an annual growth rate that will lead to a doubling of the total value every decade. Overall, 38 percent of the total exposure in Gulf and East Coast states is located in coastal counties. That 38 percent accounts for nearly 17 percent of the total value of properties in the United States.

Technique
The data is based on AIR Worldwide’s estimates for the insured value of properties as of December 31, 2007. For each state, the total insured value of properties is an estimate of the cost to replace structures and their contents, including additional living expenses and business-interruption coverage, for all coastal residential and commercial property that is insured or can be insured.

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