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 This gap, currently at 65%, is attributed to outdated FEMA flood maps that primarily focus on riverine flooding and fail to account for storm surges, sea level rise, and extreme precipitation. The analysis, conducted using Moody's RMS US Inland Flood HD model, also examined scenarios for a 1-in-500-year flood, which could lead to uninsured losses exceeding $1 trillion. The report underscores the limitations of relying on historical data to assess flood risks in a changing climate. Counties in states like Florida, Louisiana, South Carolina, and Texas are particularly vulnerable, with potential uninsured losses exceeding $5 billion in a 1-in-100-year flood scenario. 
