Hurricane Florence likely will cause billions of dollars of damage in North and South Carolina. The storm surge and wind from the hurricane will destroyed an estimated 250K homes in North Carolina. CoreLogic predicts that it will cause about 3 – 5 billions dollars of damage on insured property. The calculation does not include the cost of damage from flooding.
Hurricane Florence will cause lesser damage
than Hurricane Irma. Hurricane Irma has affected 5 states wrecking an estimated $42 billion – $65 billions of damages. When Florence reaches the shore, it is only a Category 1 hurricane. However, it is a slow moving storm which means it will linger longer and dump more water in the area.
The $3-$5 billion dollar damage is just an estimate calculated from simulation software and analyzing old storm data. They may not be 100% accurate but can be used for providing a rough estimate on how much loss Florence will cause. There is not yet any actual data on the damage until after Hurricane Florence is over. They will also have to take into account other factors like river flood height and total precipitation when calculating the total damage.
It can be say that the damage from flooding will be near or cost more than the amount of damage caused by wind and storm surge. Wind can cause damages on windows and roof but flood can destroy the entire flooring, walls, structure and building contents. Usually, mud will also enter into the structure along with the water. The muddy water will contaminate the contents more than the freshwater that enter the house.
REIT owns 740 commercial properties that stood in the path of Hurricane Florence. Almost 5 percent of REIT revenue is collected from renting properties in Carolinas. REIT owns many rental companies such as American Homes 4 Rent who has 9767 properties in two states, Invitation homes who has about 5,000 homes in Carolinas, and Front Yard Residential Corp who has 939 rental properties.
REIT is followed by VEREIT Inc. owns 545 properties while National Retail Properties Inc owns 479 properties that stood in the storm’s path. REIT suffered some losses from Hurricane Harvey last year. This year, they are more prepared and already have arranged for personnel and equipment to stand by to assist in the recovery effort.
Florence will weaken as it progresses in its track so it won’t be able to unleash full impact on other counties. The properties situated near to the coast are likely to experience more damage from the wind and storm surge compared to properties located inland. Hurricane Florence is predicted to remain at Category 1 level wind and will no longer bring threat of a tropical storm while it is in Carolina.