American Family Insurance insuretech spin off Arturo, finds 70% of Gulf Coast roofs susceptible to hurricane damage
Proptech firm Arturo says that 71.9% of homes on the Gulf Cost are susceptible to damage from hurricanes.
The finding, which would be of upmost importance to insurers because of the potential for increased industry loss from a hurricane event, is contained in the firm’s Hurricane Exposure: The State of Gulf Homes report.
According to Arturo, the report finds 71.9% of rooftops in the US are asphalt shingle, which can only withstand wind speeds up to 110 mph, or Category 3 force winds. In addition, older or degraded asphalt may only withstand winds up to 50 mph. Metal roofs are reportedly more wind-resistant and able to withstand winds up to 160 mph, but only make up 6% of roofs in the US.
Neil Pearson, chief strategy officer of Arturo, said: “Arturo is enabling insurers to better understand the complete picture of hurricane risk from a property to portfolio level so insurance companies can help educate policyholders on steps they need to take to mitigate damages in hurricane-prone areas. Any changes that occur to a property over time, like the addition of solar panels or other items that result in underinsurance, are detected as they appear so policyholders are more likely to be adequately insured.”
Writing on the report, Arturo said that insurance companies can help tackle this gap by helping policyholders and homeowners to adapt their properties to reduce exposure to risk.
Arturo wrote: “This could be as easy as exchanging a reduction in premium for a roof repair or educating policyholders on what their homeowners’ insurance actually covers, so they are adequately protected for what may come.”
The firm said that its report had used AI models, satellite imagery, and machine learning to look at more than 17.3m homes across Texas, Louisiana, Mississippi, Alabama, Florida, Georgia, and South Carolina.