Mismatch between flood risk and insurance protection: A county-level analysis in the contiguous United States

Abstract

Flood insurance plays a pivotal role in disaster management, providing the financial safety net for individuals and communities at risk. However, flood insurance penetration may not align with the actual flood risk over space. Using the National Risk Index and the National Flood Insurance Program (NFIP) Datasets, this study examines the county-level mismatch between flood risk and insurance protection across the contiguous United States, with an emphasis on both coastal and riverine flooding. Our findings indicate that, while a very limited number of high-risk counties are underinsured for coastal flooding, several high-risk counties experienced inadequate insurance protection for riverine flooding. These findings underscore the need for targeted policy interventions to improve flood risk awareness and insurance access in vulnerable areas facing the increasing impacts of climate change.