The total insured value for U.S. residential and commercial properties in coastal counties has grown to over $10 trillion, a new analysis says, but the rate of growth has slowed some since 2008 due to recession-related factors.
AIR Worldwide issued a 2013 update to its "Coastline at Risk" analysis, finding that the total insured value for coastal risks increased from $8.9 trillion at the end of 2007 to $10.6 trillion at the end of 2012. AIR says that, from its initial analysis in 2005 to its first update in 2008, the rate of growth in coastal insured values was 7 percent per year. From the 2008 update to the latest 2013 update, that rate slowed to 4 percent per year. 
"What changed during this last five-year period is that the United States endured a severe economic recession, followed by an anemic recovery by historical standards," AIR says.
The recession, AIR explains, led to a "marked slowdown in the number of housing starts," which limited the growth in insured values. "This lack of demand for new construction put a damper on labor and materials costs, which stagnated or rose only very slowly during this period," AIR says.
But AIR indicates that the rate of growth will likely pick up again as the economy recovers. "At a historical rate of 7 percent, the total values insured would double every decade," the catastrophe modeler warns. AIR calls the exposed properties along the Gulf and East Coasts the "largest factor increasing the hurricane risk of property insurers today."
As for the top states for coastal insured values, New York overtook Florida since AIR's 2008 analysis. The total insured value for New York's coastal counties was $2.92 trillion as of year-end 2012, compared to $2.86 trillion in Florida. In 2008, Florida had been first with $2.46 trillion in coastal insured value while New York had been second with $2.38 trillion.
Texas remains third in the latest update with $1.18 trillion in coastal insured value (up from $895.1 billion in 2008's update), followed by Massachusetts at $849.6 billion (up from $772.8 billion) and New Jersey at $713.9 billion (up from $635.5 billion).
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