A report recently completed by AIR Worldwide Corporation estimates that more than 35 percent of the insurance industry’s property exposure in Gulf and East Coast states is in coastal counties. The insured value of properties in coastal counties from Texas to Maine is nearly $7 trillion dollars, which comprises approximately 16% of the industry’s total U.S. exposure.
“While the debate over the potential impact of global warming remains inconclusive, there is no doubt that the economic cost of hurricanes is increasing,” said Karen Clark, president and CEO of AIR Worldwide Corporation. “The insured value of properties on the coast of the United States has roughly doubled in the past decade and the continued growth in the number and value of insured properties along the coast will be a concern for the insurance industry for many years to come.”
Based on the insured values of properties along its coast, the state of Texas was at considerable risk as Hurricane Rita hit last weekend. Texas, with $740 billion of insured property value along its coast is one of only three states with more than $700 billion of insured properties in coastal counties. Only New York and Florida have more insured property value along their coasts.
The complete report is available at:
www.air-worldwide.com/_public/NewsData/000797/The_Coastline_at_Risk.pdf.
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