Studies from Federal Reserve Bank of Philadelphia in the Area of Investment Described (Measuring Flood Underinsurance In the Usa): Investment

2025 OCT 10 (NewsRx) -- By a News Reporter-Staff News Editor at Health & Medicine Daily -- New research on Investment is the subject of a report. According to news reporting from Philadelphia, Pennsylvania, by NewsRx journalists, research stated, “Flood insurance could mitigate the negative shock from climate-induced disasters, yet many households are still not covered. Here, using data on expected flood damage and National Flood Insurance Program policies, we provide estimates of annual flood risk protection gaps and underinsurance among single-family residences in the contiguous USA.”

The news correspondents obtained a quote from the research from the Federal Reserve Bank of Philadelphia, “Annually, 70% (US$17.1 billion) of total flood losses would be uninsured. Underinsurance, defined as protection gaps among properties whose current coverage is under the optimal level, totals US$15.7 billion annually. Among at-risk households, 88% are underinsured and average underinsurance is US$7,208 per year. Underinsurance persists both inside and outside the Federal Emergency Management Agency’s special flood hazard areas, suggesting frictions in the provision of risk information and regulatory compliance. Underinsurance falls disproportionately on low-income communities.”

According to the news reporters, the research concluded: “At least 70% of at-risk households would benefit from purchasing flood insurance, even as prevailing prices rise.”

This research has been peer-reviewed.

For more information on this research see: Measuring Flood Underinsurance In the Usa. Nature Climate Change, 2025;15(9). Nature Climate Change can be contacted at: Nature Portfolio, Heidelberger Platz 3, Berlin, 14197, Germany. (Nature Publishing Group - http://www.nature.com/; Nature Climate Change - http://www.nature.com/nclimate/)

Our news journalists report that additional information may be obtained by contacting Siddhartha Biswas, Federal Reserve Bank of Philadelphia, Philadelphia, PA 19106, United States. Additional authors for this research include Natee Amornsiripanitch, John Orellana-Li and David Zink.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1038/s41558-025-02396-w. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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