Gulf Coast Homes Expected to Lose $56K in Value on Average

BP Gulf Oil spill is a disaster for homeowners, too
BP Gulf Oil spill is a disaster for homeowners, too

The unprecedented BP oil spill disaster just got worse, thanks to the estimated $56,000 drop in home value that every homeowner on the Gulf Coast could experience. As reported in Bloomberg BusinessWeek, the estimate from CoreLogic could seriously impact home values for residents of Gulfport, Miss., Mobile, Ala., Pensacola, Fla. and other communities in the Gulf region for years.

More than 600,000 properties -- from Alabama to Florida's Atlantic Coast -- may be affected by the BP oil spill. The counties with the most severe damage -- Harrison, Miss., Mobile, Ala. and Escambia, Fla. -- have approximately 71,000 homes with greatly diminished value.

BP is reimbursing homeowners for property damage under the Oil Pollution Act of 1990. This framework for compensation includes property losses. Home value reimbursements will be made on a case-by-case basis by Kenneth Feinberg, the Washington attorney tapped by BP and the Obama administration.