A new report indicates unexpected changes in geographic patterns that helped cause nearly $20 billion in flood and hurricane losses to homeowners and lenders in 2011 call for a re-evaluation of existing emergency plans and insurance options.
CoreLogic’s first Natural Hazard Risk Summary and Analysis report estimates 2011 flood losses in the U.S. at approximately $10.67 billion.
The report labels 2011 an extreme flood year that “heightened awareness of flood risk outside of the FEMA 100-year flood zones.”
Data recorded in the National Climate Data Center also give new insights to mortgage insurers because the floods of 2011. researchers said, emphasize the need to raise current flood protection standards for the critical and strategic infrastructures in the U.S.
Flood losses in 2012 are expected to be less extreme at approximately $3.53 billion.
CoreLogic analysts expect these findings about natural disaster risks will help improve the policies, procedures and safety measures placed for many homes and businesses.
Together, Hurricane Irene, Tropical Storm Lee and Tropical Storm Don caused at least $8 billion in damages, primarily from flooding, making 2011 was the most expensive hurricane season for the U.S. since 2008 and suggesting, “It’s time to rethink national flood policies, especially in major metropolitan hubs like New York City,” CoreLogic said.
Quoting the National Oceanic and Atmospheric Administration total cost estimate of $52 billion and counting in damages resulting from natural disasters, Howard Botts, executive vice president and director of database development for CoreLogic Spatial Solutions said these loss data call for serious testing of emergency response plans in under prepared regions.
At a total of 1,559 storms to date the 2011 tornado season was the third most active since 1980. In addition, only between April 25 and April 28 336 confirmed tornadoes spread across the South, Midwest and Northeast—this time frame has been identified as the largest tornado outbreak ever recorded in the United States.
According to CoreLogic these unusual changes in occurrence patterns are making clear property, casualty and commercial insurers need to reevaluate risk for tornado damage and look “well beyond the traditional geographic focus” on the so-called tornado alley and adjacent areas.
The 2011 wildfire season on the other hand continued a trend of fewer but larger wildfires. Nonetheless “there was a significant geographic shift in home losses.” For example, California had a cooler and wetter-than-average fire season in 2011 but is expected to see a dramatic increase in wildfire acreage in 2012. Meanwhile Texas, New Mexico and Oklahoma were affected by drought. The Bastrop fire in Texas alone resulted in more than 1,600 homes and structures destroyed.
Wildfire activity indicates current trends often follow “a cyclical pattern of increase and decrease” due to unusual weather changes.
