$40.9 billion in hurricane damage? Company warns Salisbury residents to brace for worst

Hurricane-related damage for all Salisbury area homeowners could total an estimated $40.9 billion according to a 2024 Hurricane Risk Report released Thursday.

The California-based CoreLogic "quantifies and explains the magnitude of hurricane risk to U.S. Atlantic and Gulf states" from Maine to Texas. This year's findings include Salisbury listed as one of the top 15 cities at risk of storm surge. In the worst-case scenario where a hurricane were to cause a nearly total loss of homes, 138,295 residential properties would have a combined Reconstruction Cost Value of about $40.9 billion with a moderate to higher risk of storm surge damage, per CoreLogic.

CoreLogic, which focuses their report on the insurance implications of hurricanes, comes on the heels of the release of the National Oceanic and Atmospheric Administration's 2024 Hurricane forecast that stipulated a range of 17 to 25 named storms, eight to 13 hurricanes, and four to seven of them being major hurricanes of Category 3, 4 or 5.

"The main thing the public should do in terms of a natural hazard is see that the risk is real," said Maiclaire Bolton Smith, vice president of Hazard and Risk Management for the company. "If you know your risk, you can accelerate your recovery. If you live in a coastal region like Maryland, you could prepare for a hurricane by having an emergency plan and look for ways to have it mitigate damage to your home."

Smith noted something as basic as checking your roof to make sure there are no loose shingles and keeping up tree maintenance were simple but effective steps any homeowner could take.

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Property owners 'didn't have that coverage'

Not all home insurance policies designed to protect your property and its contents are built the same, the company warned. For that reason, Smith advised the public to know what exactly their policy covers if they are in an area vulnerable to hurricanes, flooding or storm surges.

"Wind damage is commonly covered, while floods are a separate endorsement" Smith said. "Many times, people don't have that coverage if they live outside of the designated flood zone. What we saw in Hurricane Harvey in 2017 was 70% of the flood damage was uninsured because homeowners didn't have that coverage."

Knowing the Reconstruction Cost Value of your home is also key to assessing if your policy is sufficient.

Federal Emergency Management Agency officials also echoed sentiments that, while the hurricane season runs from June 1 to Nov. 30, severe weather can occur at any time. That is particularly due to factors like near-record warm ocean temperatures in the Atlantic Ocean, development of La Nin?a conditions in the Pacific, reduced Atlantic trade winds and less wind shear, all of which tend to favor tropical storm formation.

"Severe weather and emergencies can happen at any moment, which is why individuals and communities need to be prepared today," said Erik A. Hooks, the agency's deputy administrator. "Already, we are seeing storms move across the country that can bring additional hazards like tornadoes, flooding and hail. Taking a proactive approach to our increasingly challenging climate landscape today can make a difference in how people can recover tomorrow."

Rick Spinrad, Ph.D., NOAA's administrator, noted this year's hurricane forecast was also an opportunity to improve the science of warning the public of severe weather dangers.

“AI-enabled language translations and a new depiction of inland wind threats in the forecast cone are just two examples of the proactive steps our agency is taking to meet our mission of saving lives and protecting property," Spinrad said.

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An 'unstable and dangerous' situation

In terms of an accurate assessment of what hurricane damage could mean to vulnerable areas, the report contended underestimating the impact of natural catastrophes creates a discrepancy "between the expected and actual risk." That led to a potentially "unstable and dangerous" financial situation where insurance payouts exceed the premiums collected.

The nationwide picture corroborates the trend seen on Maryland's Eastern Shore, with the company identifying more than 32.7 million residential properties from Texas to Maine with a combined Reconstruction Cost Value of $10.8 trillion at moderate or great risk of sustaining damage from hurricane-force winds.

Adding to reconstruction costs for many policy holders is also general inflation, with federal data citing a 30% increase in the price of general construction materials and supply chain issues still stemming from the pandemic.

"Many homeowners will not be paying attention to their (policies) and assuming they're covered, and the other side is they think their risk is low and will take their chances. It is definitely a risk not spending that extra money on proper insurance," Smith said.

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This article originally appeared on Salisbury Daily Times: Experts say hurricane season could do $40.9B in Salisbury damage