Let’s talk about Hurricane Irene. Because every hurricane season, climate scientists are asked how climate change is impacting hurricanes.
The East Coast hard was by Hurricane Irene hit economically. Especially when storms strike.
Insured coastal property along Hurricane Irene’s path. It’s from North Carolina to Maine. Most notably valued at $4.9 trillion. It’s also accounting for more than half of the value of all insured coastal property in the Gulf and Eastern States.
Even though Hurricane Irene was a Category 1 storm, a preliminary estimate from the Insurance Information Institute found it could inflict $7 billion in damage. Essentially which would make it among the 10 most expensive weather-related disasters in U.S. history. In addition, it’s the costliest damage related to Irene. For that’s expected to stem from claims in some of the most densely populated areas along the East Coast, including New Jersey and New York. The cost of damage from extensive inland flooding in Vermont, New Jersey, Pennsylvania and Virginia is still unclear. However, it will most likely raise overall damage costs.
Sea levels are rising and allowing storms like Hurricane Irene to reach further inland and damage property
What would future sea-level rise mean for coasts? According to research compiled by the Union of Concerned Scientists, in North Carolina, 18 inches of sea-level rise would cause \$2 billion in cumulative property damage by 2100. In Boston, 18 inches of sea-level rise would exact cumulative costs of $13 billion by 2100. That’s also on top of $7 billion in other expected flooding costs. And if sea-level rise reaches 33 inches by 2100, today’s 100-year coastal flood will likely occur every one to two years in Boston and Atlantic City. In addition, expect every 11 to 22 years in New York City.
Further, heavier rainfall, sea-level rise and flooding can chip away at barrier islands and wetlands, leaving coastal areas more vulnerable to storms, including hurricanes.
Conclusion: Coastal Property Risk Is Now an Economic Issue
Hurricane Irene offered an early warning that coastal climate risk reaches far beyond the storm itself. Even as a Category 1 hurricane, Irene caused extensive flooding across the East Coast and threatened trillions of dollars in coastal property. Therefore, the lesson remains relevant today. (The Green Living Guy)
Climate change can amplify that financial exposure. Rising seas increase the starting point for storm surge. Meanwhile, heavier rainfall can increase inland flooding. In addition, erosion and wetland loss can remove natural protection between communities and approaching storms.
Most importantly, these risks can influence property values long before a home suffers catastrophic damage. Research from First Street found that increased tidal flooding associated with sea-level rise had already reduced home values across several coastal states. Its analysis estimated a combined $14.1 billion in lost home value across eight coastal states since 2005. (First Street)
Furthermore, homeowners now have to consider more than location, square footage and curb appeal. Flood probability, elevation, insurance costs and expected future damage increasingly belong in the real estate equation. First Street estimates flood damage using factors including projected flood depth, flood probability, building characteristics and historical damage data. (First Street)
However, this does not mean coastal property suddenly loses its appeal. People will continue to pay premiums for water views and coastal lifestyles. Instead, buyers, lenders, insurers and local governments need better information about the actual risks attached to those properties.
Ultimately, Hurricane Irene showed how quickly an environmental event can become a real estate and economic event. As sea levels rise and flooding patterns change, coastal resilience will increasingly influence what properties cost, how they are insured and how communities protect their tax base.
Protecting coastlines, wetlands and infrastructure therefore does more than protect the environment. It protects homes, property values and entire local economies.
Sources
NOAA — National Oceanic and Atmospheric Administration
Climate, hurricanes, coastal flooding and sea-level rise research.
NOAA Climate and Coastal Resources
FEMA — Federal Emergency Management Agency
Flood risk, flood insurance and community resilience information.
FEMA Flood Information
First Street — Flood Risk and Property Research
Research and property-level modeling examining flooding, expected damages and real estate risk. (First Street)
First Street
Source: Union of Concerned Scientists
