First Street’s Post

⚠️⛔️ Outdated FEMA Maps Miss Mark: Most Hurricane Debby Damage Outside Flood Zones ⛔️⚠️ Following the startling findings from First Street Foundation’s recreation of Hurricane Debby, which revealed that the majority of damaged homes lay outside FEMA’s designated flood zones, our firm strongly urges residential and commercial property owners to be proactive. Understanding the risks associated with outdated flood maps—relied upon by many in the financial sector—is crucial. It’s essential to ensure your insurance coverage reflects the real risk to your property, not just the outdated designations. This approach can safeguard your investments before disasters like floods strike. #flooding #floodinsurance #HurricaneDebby #publicadjuster

- We are learning that many areas of the US have not been mapped and even densely developed areas have decades old flood maps that have not taken into account the observed changes in the climate - What are you doing as a building owner, homeowner, real estate agent, and professional services provider? Check out First Street’s initial analysis and modelling on Hurricane Debby: - 78% of all properties flooded by Hurricane Debby, are outside of the FEMA Flood Zone. - Hurricane Debby caused $12.3 Billion in damage, with $9.7 Billion outside of FEMA’s Flood Zone.

From the First Street Foundation: Review of Hurricane Debby: First Street Recreation Finds Majority of Damaged Homes Outside of FEMA Flood Zones I think you will find that this has been true for almost every storm that has hit the US East and Gulf Coasts. We (Katie Peek and Blair Tormey) did a similar analysis for Hurricane Michael in Mexico Beach, FL and Hurricanes Matthew and Florence in SC. It is even true when those communities have brand new FEMA FIRMS. There are two lessons for this: 1) FEMA FIRMS are not designed to be definitive, hazard exposure maps. They are Flood Insurance Rate Maps. If the only information that you are using in your community for flood planning and regulation are these rate maps, you are in trouble. 2) Predicting the extent of flooding with available data in an era of increasing precipitation and rising sea level is very hard. We should be erring on the side of caution by expecting under-prediction. But, local officials often push back on maps that show realistic flood exposure because they are worried about property values, the cost of insurance, and the cost of bringing houses up to code. We really need to do a better job of explaining the economics behind the failure to deal with this threat in a meaningful way. #PSDS #floodexposure #FEMAFIRM #maladaptation

While Hurricane Debby only reached a Category 1, this reports demonstrates how the immense amount of rain can cause catastrophic damage. Estimated $12.3 billion in damages from Debby. Wonder how many small and medium sized manufacturers in the area were heavily damaged and at what cost to return to business? As of August 8 the U.S. has already experienced 19 storms that have exceeded $1 billion each so with Debby make that 20. In 2023 there were 28 storms exceeding $1 billion.

Today, FEMA published a updated flood risk rule, as part of efforts to revisit its approach to floodplain management, climate change, and the role of nature-based solutions (NBS). The rule applies to all FEMA grant programs. FEMA-funded projects are to plan for future flooding potential—including that exacerbated by climate change, and to incorporate NBS wherever possible. The rule was first proposed in 2016. #wetlandsreduceflooding https://ow.ly/YazO50SzFp4

The recent Bloomberg News article on the devastation caused by Hurricane Helene, which brought the worst flooding the U.S. South has seen in a century, highlights the deeply intertwined relationship between climate risk and national security. As extreme weather events become more frequent and severe, they not only threaten lives and property but also disrupt critical infrastructure and supply chains, posing significant risks to national stability. For investors, these events serve as a clear call to action. The financial risks of climate change are no longer theoretical—they’re happening now. To stay resilient, portfolio strategies must integrate climate risk assessments, ESG frameworks, and invest in sectors that can withstand these impacts. Aligning investments with climate-conscious principles is more critical than ever, not just for financial returns but for national security. Institutions like the Tamer Institute for Social Enterprise and Climate Change at Columbia University’s Climate Knowledge Initiative (CKI) are at the forefront, providing research and insights at the intersection of climate science, finance, and policy. Their work helps shape solutions to mitigate the long-term risks of climate change. On the grassroots level, organizations like the EARTHGANG Foundation are advocating for environmental justice, ensuring that the communities most impacted by climate change have a seat at the table in shaping solutions. Together, these efforts represent the forward-thinking approach we need to protect our future. As climate risk continues to grow, the real question is no longer if it will affect your portfolio—it’s how prepared you are for the broader impacts of climate volatility on both financial and national security. #ClimateRisk #NationalSecurity #SustainableFinance #ESG #RiskManagement #ClimateAction #CKI #EarthGangFoundation

FEMA’s new rules governing #rebuilding after #disasters will take into account the #impacts of #climatechange on future #floodrisk. For decades, the agency has followed a 100-year #floodplain standard—an area that has a 1% chance of flooding in a given year. The new standard will factor in the impact of climate change such as rising #sealevel and heavier #rainfalls when it funds rebuilding projects.

Seeking input on American flood models: does anyone know much about the flood modelling underlying the "First Street" risk assessment and how it compares to the FEMA mapping? A friend is looking to buy and getting quite different results between the two sources https://lnkd.in/ghJhNDcd

With dramatic increase in expensive wildfires and hurricanes in USA caused by man-made CO2-emissions it is difficult for us Europeans to understand, why it is not an issue in the Presidential election instead to spent a bit of the costs in eliminating the disasters through climate action!

Underwriting Flood is tough… learn how to get better with this Swiss Re Reinsurance Solutions webinar.