Mitigating damage costs from hurricane strikes along the southeastern U.S. Coast: A role for insurance markets

Damage costs from hurricanes have increased dramatically as hurricane strikes, populations, and property values have increased along the U.S. southeastern and Gulf Coast states. Federal expenditures in hurricane affected areas and coastal property insurance costs have increased as well. We discuss current public and private sector actions that impact damage costs and consider ways to mitigate future damage costs and government financial exposure. Encouraging adaptive and avoidance measures through market signals and government policies, and protecting areas such as wetlands which mitigate storm damage will help limit damage from hurricanes.