Wednesday, August 04, 2010
CoreLogic estimates that the BP DeepWater Horizon oil spill will cost homeowners in gulf coast communities $648MM over one year and over 5 years as much as $3BB. If the spill reaches the Florida Keys and the Florida Atlantic coast, losses there could reach up to an additional $28BB in 5 years. The annualized economic value of beach access at risk by oil coming ashore and beaches being closed were taken into account. Premiums were paid by buyers of homes in these coastal communities. More than 600,000 properties were identified as being within 1000 meters of the coastline in 15 counties from the gulf coast of Alabama to the Atlantic coast of Florida.