Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
Catastrophe RestorationRestoration and Remediation Industry News

CoreLogic Analysis Indicates Potential Underinsurance in Four Regional Scenarios Due to Reconstruction Cost Increases

Industry News
April 8, 2019

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its newest analysis, the 2019 Insurance Coverage Adequacy Report, which shows increases in reconstruction costs in certain disaster-prone areas range from 5.6 percent to 7.6 percent from 2016 to 2018. In this report, CoreLogic examines potential underinsurance issues in four regional scenarios of the U.S. with exposure to natural hazards: The Northeast Atlantic and Gulf Coast regions with hurricane-related storm surge risk; California with wildfire risk; and Oklahoma with tornado risk.

Data from the 2019 Insurance Coverage Adequacy Report underscores the need for insurers to ensure homeowners carry the proper amount and type of coverage that is based on updated reconstruction cost values which also includes the variation of labor by market. The report also analyzes the impact of underinsurance on the lending industry through an increase in loan delinquencies following natural hazards.

“Underinsurance issues can cause financial devastation for property owners, artificially low coverage limits for insurance carriers, and increased loan delinquencies,” said Amy Gromowski, senior leader analytics at CoreLogic. “Homeowners who experience natural hazard events, such as the California wildfires, are often struck by personal and financial devastation and many aren’t able to rebuild their homes, which prolongs the region’s recovery and often causes homeowners to default on their mortgages.”

Underinsurance figures are based on an analysis of increased reconstruction costs over just a two-year period for homes that are at very high-to-extreme risk of being destroyed or even partially destroyed in the event of a natural disaster. Highlights include:

California:

  • California is estimated to have a 5.6 percent reconstruction cost increase from 2016 to 2018.
  • If just 1 percent of homes at very high-to-extreme risk of wildfire are destroyed, the undervaluation would equate to approximately $25 million if the coverage isn’t current.

Florida:

  • Reconstruction costs in Florida increased an estimated 5.6 percent from 2016 to 2018.
  • If 5 percent of homes with very high-to-extreme storm surge risk were destroyed, the reconstruction cost undervaluation would be approximately $205 million if coverage isn’t current.

Houston:

  •        Houston has had a reconstruction cost increase of approximately 7.6 percent from 2016 to 2018.
  •        If flooding in Houston caused 5.4 percent damage to homes in very high to extreme risk flood areas, a 7.6 percent undervaluation equates to $49 million if coverage isn't current.

Oklahoma:

  • Oklahoma is estimated to have a 6.6 percent reconstruction cost increase from 2016 to 2018.
  • If a severe convective storm caused 20 percent damage to only one percent of homes that are deemed high risk of tornado winds, the reconstruction cost undervaluation is approximately $34 million if coverage isn’t current.

Delinquency rates spike following natural hazard events. Following 2017’s hurricanes Harvey, Irma and Maria, delinquency rates on home mortgages tripled in the Houston, Texas and Cape Coral, Florida metro areas and quadrupled in San Juan, Puerto Rico.

For more information, read the full 2019 Insurance Coverage Adequacy Report, which includes charts and figures.

KEYWORDS: disaster restoration

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Cleaning and Sanitation
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

bed bug

How Cutting-Edge Bed Bug Tech is Changing the Game for Restoration Pros

particle count hands-on demonstration of a HEPA filter

The Truth About HEPA Filters

water on basement floor

How Much Water Causes Water Damage?

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Doffing PPE

When you are doffing your PPE, do you sanitize between every step?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Prepare for CATASTROPHE with R&R!

Related Articles

  • Industry News

    CoreLogic Report Finds 6.9 Million Homes at Risk of Hurricane Storm Surge Damage with $1.6 Trillion in Potential Reconstruction Costs at Stake

    See More
  • Hurricanes Harvey and Irma

    CoreLogic Analysis Shows an Estimated 8.5 Million Properties in Florida at Significant Risk of Potential Wind Damage from Hurricane Irma

    See More
  • buildfax july

    Latest BuildFax Report Indicates Weather-Related Roof Repairs Drive Maintenance Increases

    See More

Related Products

See More Products
  • M:\General Shared\__AEC Store Katie Z\AEC Store\Images\r&r\new site\waterinbuildings.gif

    Water in Buildings: An Architect's Guide to Moisture and Mold

  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

  • red-guide-national-815.png

    National Red Guide - A Step by Step Guide to Disaster Recovery

See More Products

Related Directories

  • magicplan

    With magicplan, restorers and claims professionals get it right in real-time. magicplan users generate instant floor plans using the camera of their mobile device, and send accurate sketches directly to estimating tools like Xactimate® or CoreLogic without any processing time with instant ESX and FML files for quicker claim submissions. Additionally, the app ensures damage is documented clearly with photos, virtual tours, notes, and customizable forms. With its built-in estimating tool, users can swiftly calculate material and labor costs, producing ready-to-share PDFs.
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing