Flooding continues to be one of the most significant risks property owners face. According to the National Flood Insurance Program (NFIP), 90% of all U.S. natural disasters involve flooding (source 1). Many people assume that only those who live in coastal areas or near bodies of water are vulnerable to flooding, but that’s not actually the case. In fact, 98% of counties in the United States have been impacted by flooding at some point (source 2).

While the summer sun is shining, only remnants of California’s three-year drought remain after a winter of massive storms. As of early April, the U.S. Drought Monitor reported that areas of drought covered less than 9% of the Golden State, a sharp fall from more than 99% as of October 1, 2022. Into May, the state remained roughly 92% drought-free after months of rain and snow. California’s winter was marked by multiple atmospheric rivers that dumped vast amounts of rain and blanketed mountains with an extraordinary level of snowpack. According to the National Oceanic and Atmospheric Administration (NOAA), there is a 50% - 60% chance weather in central and Northern California will be wetter than usual.

Uncertainty can prove costly when it comes to purchasing property insurance. When pricing catastrophe risks, underwriters must be able to quantify them accurately. Where uncertainties arise, underwriters often adjust prices in an attempt to compensate for the unknown or decline the risk entirely. Uncertainty also tends to drive up the loss estimates produced by CAT modeling tools used to help underwrite property coverage today. To avoid paying unnecessarily high prices, insureds should provide detailed data that creates a complete and accurate picture of their exposures in a schedule of values. Complete submissions based on more precise data are likely to receive a warmer welcome from underwriters who have seen an increase in submission volume in the current market. Brokers that can provide a detailed catastrophe risk assessment report using the latest modeling technology can help clients make more informed decisions about risk transfer strategies and better position them to achieve the most cost-effective insurance program.

Flooding continues to be the most expensive and the most common natural disaster in the United States, resulting in billions in economic losses every year. According to the National Flood Insurance Program (NFIP), 90% percent of all U.S. natural disasters involve flooding.

The term catastrophe became a part of everyday life this year as the global coronavirus pandemic spread across the country. With spring also came the "normal" catastrophes, including a spate of deadly thunderstorms and tornados. This was followed by an early start to a hurricane season that kept setting records through the summer, and a disastrous wildfire season for which the full scope of damages will not be known for some time.