The study identified flooding as the"deadliest, costliest and most widely experienced in the United States" when compared to other natural disasters.
"Currently, more than 14.6 million properties in the United States face at least a 1% annual probability of flooding, with expected annual damages to residential properties exceeding US$32 billion," the study said, adding that flooding is expected to increase with climate change. With the lack of homeowners supplementing with flood insurance and increasing climate-related dangers—such as intensifying hurricanes orWhen Hurricane Ian ravaged Florida last year, more than 1 million Floridians impacted by the storm wereAccording to the Federal Emergency Management Agency , floods can occur anywhere—not solely in coastal areas. And if someone miscalculates their property's flood risk, their finances could take a significant hit if a flood did occur.
According to experts in CNBC's article, home costs in today's market don't account for the home's flood risk. Instead, the homes, which are already overvalued, present a mispricing issue for areas at risk for floods. FEMA describes floods as the most common natural disaster and one of the costliest, as well. A website dedicated to FEMA's National Flood Insurance Program reported that an inch of floodwater can cause $25,000 in damage to a home or property. Meanwhile, many homeowners insurance options don't cover floods because flood insurance is a separate policy.