Several of my recent posts focused on climate-related problems. One pointed out that a large percentage of the internal migration within the U.S. is to areas that are particularly prone to weather problems such as storms, hurricanes, drought and wildfires. Another suggested that many inhabitants of those areas are underinsured for the weather-related risks to which they are exposed. One risk that deserves special attention is flooding in that it is not covered by most homeowner’s policies. Separate flood coverage is generally available, but only about 30% of residents of high-risk areas choose to purchase it. The following chart demonstrates why this is such a pressing issue.
Note that the number of annual declared flood disasters has increased from only a handful in the early 2000’s to 66 so far in 2024. In the case of hurricanes Helen and Milton, the majority of the damage, which is expected to cost $85 billion, was due to flooding. There are two common explanations for the increase in flood frequency and damage. First, every 1 degree rise in temperature implies 4% more water vapor in the atmosphere which increases the rainfall associated with storms and hurricanes. Second, development has reduced the ability for the ground to absorb rainfall in many places and just under forty percent of the population resides in coastal counties.