The perfect storm?
POLICY GROWTH GOES NEGATIVE Between October 2014 and September 2015, the majority of states saw a decline in policies under the National Flood Insurance Program, painting a clear picture of diminishing coverage.
With an end to mild weather on the horizon, are Americans underinsured for flooding? FLOODS HAVE the dubious honor of being the number-one natural disaster in the US, according to the National Flood Insurance Program. Recent years have seen a drop in flood coverage rates, thanks to a few years of mild weather. But that could soon change – the US National Oceanic and Atmospheric Administration reported this spring that more
Percentage of states that have experienced floods in the past five years
$3.5 billion+ Yearly average of total flood insurance claims from 2005 to 2014
than a third of the land in the contiguous US is at above-average risk of flooding in 2016. NOAA has also forecast above-average precipitation for the Gulf Coast, Midwest and much of Alaska for three months starting in July. The organizaton also predicted that this hurricane season is likely to see at least 10 – and as many as 16 – named storms, of which four to eight are expected to become hurricanes.
Number of major flood disasters declared this year by the federal government, as of June 5
Amount of the average flood claim between 2010 and 2014
Sources: FloodSmart.gov; FEMA, June 2016
LOSSES SEE A SIGNIFICANT DROP
Coverage levels began declining in the years following Hurricane Katrina, and the trend has picked up speed in the mild years since Superstorm Sandy in 2012..
Losses under the National Flood Insurance Program have dipped in recent years, lulling consumers into a false sense of security. The average flood claim of $29,033 in 2014 is less than half of the average ($60,488) for 2012.
Policies in force at year-end Source: FEMA, 2015
$3.49 billion $2.43 billion $780 million $775 million
2014 Source: FEMA, 2015
7/07/2016 10:00:17 PM