Current flood maps aren't accurately predicting disaster risk, CFPB finds

FEMA flood maps mainly focus on coastal areas, leaving other areas vulnerable, analysis by Consumer Financial Protection Bureau finds. Images (c) ConsumerAffairs

FEMA flood maps mainly focus on coastal areas, leaving other areas vulnerable

The Consumer Financial Protection Bureau (CFPB) released a new report showing differences in how likely homeowners with mortgages are to have flood insurance, based on location, income and assets.

It founds that homeowners in coastal areas were most likely to have flood insurance and generally had higher incomes and assets, making them better able to recover from floods. However, homeowners near inland rivers and streams were less likely to have flood insurance and had fewer resources to recover from floods.

The report looked at flood risks in the southeast and central southwest U.S., using data from FEMA and the First Street Foundation. It found that FEMA's flood maps mainly focus on coastal areas and may not fully capture flood risks in inland areas. This leaves many homes underinsured, especially in inland flood-prone areas.

Key findings include:

  • Current flood maps may not accurately reflect future flood risks.
  • Over 400,000 homes in certain U.S. regions may be underinsured for flooding.
  • Homeowners in high-risk inland flood areas are more likely to have lower incomes and fewer financial resources to recover from floods.

The CFPB’s report highlights the need for better flood insurance coverage and financial resources for homeowners in flood-prone areas.