Louisiana homeowners face highest risk of extreme weather losses by 2050

A recent report from property data company Cotality highlights that flooding, hurricanes, and severe storms will drive significant financial losses in the U.S. housing market in coming decades, CBS MoneyWatch reported.

The analysis ranks Louisiana as the state with the highest exposure to severe storms, currently experiencing $6.7 billion in annual losses mostly from hurricanes. These losses are projected to increase to $11.4 billion by 2050, driven largely by inland flooding.

Mississippi and Florida follow Louisiana as the states most vulnerable to hurricane-related damage, with forecasted housing market losses increasing by approximately 62% and 54%, respectively, by mid-century.

Cotality's risk-scoring model factors in the severity and likelihood of extreme weather perils, revealing that even inland states like West Virginia may see rising losses due to flooding.

The report also notes that insurance companies are raising premiums or withdrawing from high-risk markets, potentially leaving homeowners more exposed to financial impacts.

This growing risk underscores challenges for homeowners and the housing market as climate change intensifies extreme weather events.