Insured value in hurricane-prone areas to double every decade

The insured value of properties in hurricane-prone areas of the United States over the past three years has continued to grow at a compound annual growth rate of just over 7%, a report from AIR Worldwide Corporation says.
Despite the recent weakening of the real estate market in many areas, the insured value or the cost to rebuild properties has maintained an annual growth rate that will lead to a doubling of the total value every decade, an AIR release says.
“While the scientific debate over the effects of global warming on the frequency and severity of hurricanes remains inconclusive, there is no question that the significant increase in the number and value of exposed properties over the last decade has and will continue to contribute to increasing hurricane losses for insurers,” said S. Ming Lee, president and CEO of AIR Worldwide.
Overall, 38% of the total exposure in Gulf and East Coast states is located in coastal counties, which accounts for nearly 17% of the total value of properties in the United States, the release says.
The insured value of residential and commercial properties in coastal counties of Florida and New York has exceeded US$2 trillion each.