Nearly 700,000 Prop­er­ties Dam­aged by Florence

National Mortgage News - - Servicing - By Paul Cen­topani

Hur­ri­cane Florence’s flooding and wind de­struc­tion af­fected about 700,000 res­i­den­tial and com­mer­cial prop­er­ties across North Carolina, South Carolina and Virginia, ac­cord­ing to CoreLogic’s lat­est es­ti­mates.

While the mort­gage delin­quency rate fell to a 12-year low last month, that num­ber will be on the rise in the com­ing months due to Florence and the im­pact of the im­pend­ing hur­ri­cane sea­son. If last year was any in­di­ca­tion, the delin­quency rate could peak above 4.5% by De­cem­ber. Any hous­ing mar­kets dev­as­tated by Florence and all hur­ri­canes that fol­low will still be on the mend a year from now.

Worst-case pro­jec­tions es­ti­mate a to­tal of $28.5 bil­lion in storm surge and in­land flooding losses, plus an ad­di­tional $1.5 bil­lion in wind dam­age. Of the surge and flooding losses, an es­ti­mated $18.5 bil­lion are unin­sured.

“The unin­sured losses make up such a large share of the to­tal — a greater per­cent­age than Hur­ri­cane Har­vey last year — be­cause Florence is pri­mar­ily a flood event, and in­sur­ance cov­er­age for flood is lim­ited, es­pe­cially on the res­i­den­tial side,” David Smith, se­nior di­rec­tor of model de­vel­op­ment at CoreLogic, said in a state­ment to NMN.

“Flood in­sur­ance is only manda­tory for homes with mort­gages that are lo­cated within FEMA’s spe­cial flood haz­ard ar­eas — es­sen­tially 100-year flood zones. Many of the homes im­pacted by Florence are out­side of these ar­eas, and some of the homes within the SFHAs don’t carry mort­gages.”

North Carolina bore the brunt of the storm and holds the ma­jor­ity of the es­ti­mated dam­age.

About 80% of both res­i­den­tial and com­mer­cial prop­er­ties and losses lie in the Tar Heel State, with South Carolina ac­count­ing for close to the re­main­ing 20% of the prop­er­ties.

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