Insider Monkey

Best Water Damage Restoration Services in Each of 30 Biggest Cities in the US

Aima Zaheer
12 min read

In This Article:

In this article, we will take a look at the best water damage restoration services in each of 30 biggest cities in the US. If you want to skip our discussion on the restoration and remediation sector, you can go directly to the Best Water Damage Restoration Services in Each of 5 Biggest Cities in the US.

The restoration and remediation sector has witnessed significant growth in the recent past. In 2020, the global restoration sector was valued at around $210 billion. The water damage restoration sector is now projected to experience a compound annual growth rate (CAGR) of 6.8% from 2020 to 2025. Water damage restoration services take up the largest market share of the industry at 41%. The rise in demand for water restoration services in the United States is mainly due to the risks related to various climates and the occurrence of natural disasters across multiple regions. For example, the Midwest experiences a significant number of tornadoes, primarily during April, May, and June. Similarly, floods represent a frequent natural occurrence in the US, especially when tropical storms and hurricanes hit the Gulf Coast. However, flooding isn't confined solely to the Gulf Coast. Approximately 10% of the total land area in the United States has been classified by the Federal Emergency Management Agency (FEMA) as high risk for flooding. This classification affects around 13 million people across the country.

Floods prove to be a costly challenge as they significantly impact the insurance sector, leading to high property damage payouts. The National Flood Insurance Program (NFIP) has paid out over $50 billion in claims in the last 20 years. Over 75% of flood insurance payouts have been made to just five states: New York, Texas, Louisiana, New Jersey, and Florida. Louisiana, in particular, has faced the highest flood claims, totaling $22.1 billion, mainly due to Hurricane Katrina.  The biggest flood claims in the NFIP have been from hurricanes Katrina, Harvey, and Superstorm Sandy. Such disasters often leave popular home insurers like Aon plc (NYSE:AON), The Progressive Corporation (NYSE:PGR), and Erie Indemnity Company (NASDAQ:ERIE) with above-average payouts in the hurricane and flooding belt regions. Many companies are evaluating measures to control their exposure to flood damage claims. You can also check out the 15 Best Home Insurance Companies Heading into 2024 here.

Here's what Artisan Partners said about The Progressive Corporation (NYSE:PGR) in its Q3 2023 investor letter:

“The Progressive Corporation (NYSE:PGR) was also a strong performer this quarter. The period started poorly for Progressive as shares were down 13% on July 13. The company reported weak prior-year development in its first-half results as well as high costs for catastrophes. Claims inflation has been an industry problem, and investors feared Progressive would be unable to offset rising claims inflation through pricing, which could hurt policy growth. We added aggressively to our position on weakness given our confidence in Progressive’s low-cost model and excellent underwriting. Claims inflation is not a Progressive-specific issue, and we felt it would be able to pass on the costs and still retain its competitive advantage given its low-cost model. The company recently reported results that showed the business is recovering margin and still growing policies. The share price has more than recovered the July losses.”

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice

Recommended Stories