Closing the Protection Gap for Flood Risk: How Can U.S. Communities Better Guard Themselves Against the Disruptive – and Very Real – Threat of Floods?

With each passing year, the nation’s collective vulnerability to flooding grows. The cost of these events continues to increase – as does the risk of property damage. According to data from First Street Foundation, annual losses on homes with a 1 percent chance of flooding will increase by 61 percent – to $32 billion – over the next 30 years.

Most homeowners lack the appropriate safeguards, putting their economic health – and the financial stability of their communities – at risk.

The solution to such a multifaceted challenge must be equally dynamic, with meaningful shifts in risk awareness, public policy, mitigation and resilience measures, and advancement of a private flood insurance market.

This paper examines the nature of flood risk, its economic consequences, how policymakers can help promote the importance of resilience and mitigation, and the role of insurance in alleviating the impacts felt by individuals and communities after a flood.