July 2015 to June 2016
The proposed study builds on ongoing research with CREATE on flood risk management and insurance in the United States that will be conducted in close collaboration with the top management of FEMA at the U.S. Department of Homeland Security. Floods are the one natural disaster where the federal government currently plays a major role in designing and implementing strategies for mapping the risk, reducing future losses by supporting risk prevention, and aiding financial recovery through the National Flood Insurance Program (NFIP). Hurricane Sandy devastated the New York/New Jersey region, triggering $60 billion in federal relief. The disaster revealed the limited amount of flood insurance purchased by those suffering damage; 4 out of 5 victims did not have flood insurance despite living in flood-prone areas. The NFIP had to borrow nearly $10 billion from the Treasury to pay its claims, increasing its debt to nearly $27 billion.