Improving the Post-Flood Financial Resilience of Lower-Income Households through Insurance

Flooding is the costliest natural disaster and the risk is escalating in many places due to the combined effects of sea level rise, changing storm patterns, and increased development [e.g., 1-3]. Prior research has found that lower-income groups and minorities suffer disproportionately from disasters and recover less quickly than more privileged residents [for example: 4, 5-7]. Current policies and programs are not effectively meeting the post-disaster financial needs of these households. As many municipalities around the country face escalating flood risk in the coming years, new policies are needed to secure the post-disaster financial resilience of low- and moderate-income (LMI) households.