07 Apr Natural Hazard Report from CoreLogic
CoreLogic is a property information, analytics, and data-enabled global solutions provider. It recently released a Natural Hazard report, which included a retrospective of areas affected by earthquakes, storms, and other disasters. Based on this research, the company expects mortgage delinquency rates to increase—and it may take at least a year before these rates normalize to pre-disaster levels. Hurricane Harvey, Irma, and Maria resulted in devastating delinquency rates, including tripling delinquencies in cities like Houston and Cape Coral, Florida. In some areas, like Puerto Rico, delinquencies quadrupled.
While not every year sense has been increasingly catastrophic, the trend toward higher losses is absolutely continuing, according to Industry Solutions. Natural disasters create a ripple effect which makes it extremely important to continue to improve analysis and data in order mitigate these disasters and foster resiliency. In order to create stronger future prospects, it’s important to fully understand what has happened in the past.
Seven years over the past decade featured ten or more climate or weather related disasters resulting in over one billion dollars in losses. This increase in natural disasters has heralded some policy changes, including:
- Reforms of the National Flood Insurance Program (NFIP)
- Significant changes in mitigation and recovery policy-the most significant since Hurricane Katrina
- FEMA’s flood mapping and risk assessment will likely change due to the Risk Rating 2.0 program, which will likely commence in 2021
Some of the catastrophic and severe weather events examined in the report are:
- Tornadoes: Both Ohio and Texas experienced tornado events that cost millions to billions in losses.
- Hurricanes: The cost of Hurricane Dorian alone rose above three billion dollars.
- Flooding: Hurricane Barry, Typhoon Hagibis, and other flooding events made it evident that current flood insurance coverage is insufficient