FEMA: flood losses up 72.6%

InsuranceNewsNet reported on July 8 that U.S. flood exposure is projected to rise 72.6% by 2050 from 2020 levels, citing Fathom’s 2026 U.S. Flood Risk Index and FEMA-linked insurance data. The report said floods caused more than $8 billion in damage in 2024, and $3.8 billion of that occurred outside areas considered high risk. Fathom said the increase reflects rising exposure of people and property to flood hazards across the country. FEMA says its flood maps are used by lenders, insurers and communities to determine insurance requirements and risk-reduction planning. ### Where is the risk rising fastest? Fathom’s projections put Louisiana first and Florida second for the fastest-rising flood risk among states highlighted in the InsuranceNewsNet report. The same report said fewer than 23% of homeowners in Louisiana carry flood insurance, while the share in Florida is below 15%. In South Carolina and Texas, it said, fewer than 7% of homes have flood insurance, citing FEMA data. (insurancenewsnet.com) Texas stood out in the report for the number of counties in high-risk flood zones. That matters because FEMA’s National Flood Hazard Layer is the base dataset used to identify current effective flood hazard information for the National Flood Insurance Program, while Fathom’s index adds modeled projections intended to show how risk may change over time. (insurancenewsnet.com) ### Why does the insurance gap matter? FEMA requires flood insurance mainly for federally backed mortgages in designated high-risk areas, not for every property exposed to flooding. FEMA says its maps help determine insurance requirements, but the InsuranceNewsNet report noted that billions of dollars in 2024 damage occurred outside zones widely treated as highest risk. That leaves many households exposed even when they are not in places traditionally labeled as flood-prone. (insurancenewsnet.com) Moody’s said in a May 2026 analysis that the United States could face more than $375 billion in aggregated uninsured flood losses from a 1-in-100-year event if coverage levels stay unchanged. Moody’s said its scenarios assume static insurance take-up and no added flood defenses, framing the estimate as current structural exposure rather than a forecast of realized losses. (fema.gov) ### What exactly is being measured in the 72.6% figure? Fathom said the 72.6% figure refers to the increase in average annual exposure of the U.S. population by 2050 relative to 2020. The company says its index combines public U.S. flood-risk data with its own peer-reviewed research and flood-mapping work to provide state-level insight for adaptation and investment decisions. (moodys.com) A separate Fathom-US research page says FEMA modeling covers only about one-third of U.S. river reaches, while Fathom’s national model was built to provide continuous coverage across the contiguous United States. That does not replace FEMA’s regulatory role, but it helps explain why insurers, lenders and local governments are comparing official maps with broader modeled estimates of exposure. (insurancenewsnet.com) ### What does this mean for local governments and insurers? Texas officials already maintain a statewide flood-planning data hub through the Texas Water Development Board for regional flood planning groups. The board says the hub is meant to support modeling, visualization and planning for flood risk, including coastal flooding work tied to Hurricane Harvey-affected counties. (sites.google.com) The next reference points are already public. Fathom’s 2026 U.S. Flood Risk Index remains available by state, and FEMA’s flood-map and National Flood Hazard Layer tools continue to be the main federal sources communities, lenders and homeowners can use to check designations and insurance-related requirements. (fathom.global) (twdb.texas.gov)