A recently published assessment revealed how climate change is endangering the flood insurance markets and disaster relief programs in the U.S. Reports say due to increasing prices, Americans relinquished their insurance which increases the burden on disaster relief programs in turn.Across the U.S., flooding is a growing risk in areas with high surges of water or even as a new hazard in locations that were previously unlikely to be flooded. An assessment recently published by the Grist Magazine, in partnership with the Economic Hardship Reporting Project, revealed how climate change is endangering the flood insurance markets and disaster relief programs.
According to Parshley, as prices of the flood insurance plans increase, thousands of individuals have relinquished their insurance which also worsened the burden on federal disaster relief programs by straining its tight budget.
Flood Insurance Markets Failing
Unfortunately, an article in Grist states that the insurance policies of most homeowners do not include damages from flooding which requires families to acquire a different flood insurance plan. Reports say most of these insurance plans are purchased through a government-supported program named “National Flood Insurance Program”. However, the lack of transparency on what assistance will be provided from flood insurance or disaster relief prevents families from being able to receive the help they need.