U.S. Faces $375 Billion in Uninsured Flood Losses from 1-in-100-Year Event, Moody's Reports
• A recent whitepaper from Moody's highlights a significant financial risk posed by the growing gap between flood risk and insurance coverage in the United States.
• The report estimates that a 1-in-100-year flood event could result in over $375 billion in uninsured losses nationwide.
• This gap, currently at 65%, is attributed to outdated FEMA flood maps that primarily focus on riverine flooding and fail to account for storm surges, sea level rise, and extreme precipitation.
Why It's Important?
The financial and social impacts of the uninsured flood risk are substantial. Households and local governments are particularly vulnerable, as they often rely on FEMA flood maps that do not fully capture the scope of modern flood hazards. Counties in 11 states, including Florida, Louisiana, and Texas, account for 65% of the nation's uninsured loss exposure. The protection gap ranges from 45% to 75% in these areas. Additionally, the report warns that uninsured loss exposure could increase by 25% by 2050, reaching $472 billion. Events like Hurricane Helene in 2024, which caused unprecedented rainfall in Asheville, North Carolina, highlight the growing risks of extreme weather events.
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