Authored by Sara Weathers
According to a recent Insurance Journal article, Colorado State University (CSU) researchers have revised their forecast for the 2023 Atlantic hurricane season, projecting an above-average season. They anticipate 18 named storms, nine hurricanes, and four major hurricanes, compared to the long-term averages of 14 named storms, seven hurricanes, and three major hurricanes. Despite a robust El Niño forecast, the tropical and subtropical Atlantic's record warm sea surface temperatures create conditions conducive to hurricane activity, thus increasing the risk for the United States.
The Insurance Information Institute (Triple-I) reported a steady rise in insured losses from hurricanes over the past 15 years. Nine of the ten costliest hurricanes in U.S. history occurred since 2005, attributed to factors such as population growth in hurricane-prone states and increased rainfall accompanying storms. The resulting heavy flooding has led to costlier insurance claim payouts for wind and flood-caused property damage.
While coastal wind speeds and storm surges garner attention, inland flooding has emerged as a significant concern. Hurricanes such as Ida in August 2021 and Ian in September 2022 demonstrated the devastating impact of heavy flooding in regions far from their landfalls. The growing risk of inland flooding necessitates proactive measures, including property and flood insurance coverage, to safeguard property owners from potential financial losses.
Property insurance plays a crucial role in protecting property owners from the devastating aftermath of hurricanes. With climate changes contributing to elevated hurricane losses, property insurance can provide financial security against property damage and losses due to heavy flooding. While some losses are attributed to non-climatic factors, such as increased exposure to new development and inflation, flood insurance remains vital to disaster preparedness.
As population growth continues in hurricane-prone states, coastal construction and rising property values contribute to higher loss exposure. Climate-resilient building practices that account for potential storm impacts and mitigate damage are essential to minimize the financial burden on affected communities. Combining property insurance with resilient building practices can offer comprehensive protection against the escalating risks associated with hurricanes.
For more on coastal construction, climate change, and the effects on hurricane-prone states, check out Insurance Journal. Have questions on how your firm’s property insurance could be affected? AdvoCap Insurance is here to help.
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