Damage from the surge in Hurricane Laura could destroy 432,810 residential properties, according to CoreLogic, the cost of reconstruction in Texas and Louisiana totaling over $ 88.6 billion.
These estimates assume an expected landing as a Category 3 hurricane. However, the numbers soar to worst-case highs of 496,966 households and $ 125 billion when escalating to a Category 4 and dropping to 223,573 and $ 44.2 billion as a Category 2.
Projections show that Laura will reach the Gulf Coast on Wednesday evening and move inland on Thursday morning.
"The coincidence of two disasters – a damaging hurricane season and the ongoing global pandemic – underscores the importance of properly assessing reconstruction costs, one of the core tenets of property insurance," said Tom Larsen, Principal of Insurance Solutions at CoreLogic in a press release. "Homeowners, mortgage lenders and insurers need to work together to ensure properties are fully protected and insured. CoreLogic data has identified a correlation between mortgage defaults and disasters that could indicate a serious problem in trends in underinsurance."
Hurricane season could create an entirely new wave of non-performing loans that need to be addressed in addition to coronavirus-related moronia mortgages.
In the Category 3 scenario, the Houston metropolitan area has the highest number of homes at risk as well as reconstruction costs caused by surge damage with 126,343 homes and just over $ 26 billion. Beaumont-Port Arthur, Texas follows with 77,789 properties and valued at $ 14.1 billion. The Houma-Thibodaux, La. Real estate market is next equal to 74,112 homes at risk, valued at $ 15.3 billion in RCV.