Research shows that the sea level is rising, with an increase that equates to almost two and half times the average growth rate of the early 2000s. The prediction is that the sea level will rise to be at least an entire foot over 2000 levels regardless of how much the global release of greenhouse gasses will decrease. Though this may not send off alarm bells for the residents of Kansas, those owning waterfront properties across the United States need to be prepared for potentially devastating rising sea levels in the near future.
Making Predictions for Property Owners
The next 30 years hold a lot of change for coastal real estate. The response to the rising sea levels is a prediction of chronic flooding. The average mortgage is 30 years, and in the next three decades, almost $118 billion worth of seaside real estate is expected to see chronic high tide flooring more than 26 times a year. If the trend continues throughout the rest of the century, it is said that one trillion worth of real estate is at risk for loss. These risk-facing properties are home to more than 4.7 million U.S. residents.
Promoting the Risks
The risks of a rising sea level have been a concern to scientists and researchers, but home and business owners have not always given these risks much thought. Neither have the credit rating agencies, the mortgage or property lenders, government agencies, and third parties with a stake in the property. As an insurance agent, appropriate action involves more than just educating the client on the potential exposures of a rising sea level. The added risks taken on by insurers are sure to drive up premium costs, raise deductibles and redefine coverage limits.
Seeing the Areas of Impact
Research has made it clear that U.S. coastal reasons are at risk with the oceans’ rising tidewaters. The implications of such events are many, but here are just two to note.
- Florida and New Jersey will be the most acutely threatened with chronic flooding issues. The next 20 years could see more than $26 billion in property damages between the two states alone. Florida is home to almost half of all the homes in the country at risk for flooding.
- Low-income and blue-collar communities will face increased economic challenges as chronic flooding takes place. Low-income homeowners don’t have much, and in states like Maryland and Louisiana, there are heightened concerns of chronic flooding perpetuating poverty levels. Blue-collar workers in places like Pennsylvania, Massachusetts, Oregon and Mississippi have found their homes devalued by almost 60% due to the risk of flooding.
Setting Up Coverage
Dealing with clients in these areas requires knowledge of what is coming, but it also helps to provide risk management strategies. One strategy involves purchasing insurance coverage uniquely underwritten to address the exposures of a particular coastal property.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.