A new assessment by Moody’s shows that the United States faces a widening gap between growing flood risk and the take-up of flood insurance, potentially exposing the country to more than $375 billion in aggregated uninsured flood losses from a 1-in-100-year event.
A recent report published by the firm, authored by Jennifer Chang, Senior Vice-President for Sustainable Finance Credit at Moody’s Ratings, and Firas Saleh, Director of North American Flood Models at Moody’s, evaluates residential flood exposure across the US, and finds significant gaps between insured and uninsured losses at county level under different flooding scenarios.
The agency argues that flood exposure is becoming an increasing credit concern for US state and local governments, driven by more frequent and severe weather events, residential development in flood zones, and limited levels of insurance coverage.
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