Hurricane Harvey Reconstruction Costs Could Approach $40B—CoreLogic

The storm’s storm surge imperils 232,721 homes along the Texas coast with a reconstruction cost value of approximately $39.6 billion, according to CoreLogic’s analysis.

(Image source: NASA/NOAA.)

CoreLogic (Irvine, Calif.), a provider of global property information, analytics and solutions, has released data analysis which shows that 232,721 homes along the Texas coast with a reconstruction cost value (RCV) of approximately $39.6 billion are at potential risk of hurricane-driven storm surge damage from Hurricane Harvey, based on Category 3 predictions. Current projections do not expect Hurricane Harvey to exceed a Category 3 storm.

The table below, provided by CoreLogic, shows the total number of properties at risk of storm surge damage for each of the five hurricane categories as well as the accompanying RCV for the Core Based Statistical Areas (CBSAs) located along the Texas coast that could potentially be affected. The RCV is the cost to completely rebuild a property in case of damage, including labor and materials by geographic location, assuming a worst case scenario at 100-percent destruction.

CoreLogic’s analysis measures exposure to damage from storm surge and does not include potential damage from wind and rain associated with hurricanes. The analysis encompasses single-family residential structures less than four stories, including mobile homes, duplexes, manufactured homes and cabins, among other non-traditional home types, according to CoreLogic. This does not infer that there will be no damage to residential units greater than four stories, as there may be associated wind or debris damage. However, including all high-rise residential units in the CoreLogic analysis would inaccurately inflate the number of homes at risk of storm surge flooding by including homes that are elevated above the potential for damage from surge waters.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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