The Impact of Flooding

After the loss of life, homeowners and business owners are primarily concerned about property damage. And with good reason. According to FEMA:

• 99% of U.S. counties were affected by flooding between 1996 - 2019.
• At least 25% of small businesses fail to reopen following a disaster.
• One inch of water can cause $25,000 of damage.

Small hurricanes, like Irene in 2013, can do plenty of damage: $153 million in state and local costs and $603 million in federal outlays. But, category 4’s and 5’s, like Hurricane Katrina or Hurricane Harvey, can cause catastrophic damage with long-term consequences.

The impact of flooding extends to local and regional economies as well. As little as six inches of water is often enough to close businesses temporarily, shut schools, force residents from their homes (or stay in them), and cause enough damage to deplete emergency funds, lose tax revenue, and more.

Floods also stymie tourism. After Hurricane Katrina, New Orleans saw a drop of roughly 7 million tourists from 2004 to 2005, leading to nearly $2 billion in lost tourism revenue. With the glacial pace of storm recovery, several years of reduced spending caused by cleanup can cripple a region’s economy. Some never recover.

Flooding negatively affects health and hygiene in the affected area in the short and long term. Floodwater may knock out the municipal water supply, but you should never drink water from rain or rising rivers. It can become contaminated with sewage and chemicals, which can cause boils, rashes, and infection.

Clean standing water will become stagnant within 72 hours, and mosquitos and other pests may appear soon after. The risk of disease remains a risk until the water drains away, evaporates, or workers clear it from the area.

Health officials warn that food that comes into contact with floodwater is not safe to consume. Parents should also clean their children’s toys, clothes, and belongings before use.

Floods can devastate entire regions, destroy homes and businesses, and leave dire health and economic consequences behind. But with proper preparations, you can mitigate the impact of flooding on your health and property.

Remember that traditional homeowners policies do not cover flood damage, so personal flood insurance through the National Flood Insurance Program (NFIP) can help you recover after a flood-related loss. Commercial flood insurance is also available. FEMA's new Risk Rating 2.0 pricing methodology allows them to set rates, increases, and decreases that are fairer and more equitable.

Preparedness is the key. Learn more about flood insurance and the steps you can take to protect your family, home, or business against flooding. You can also talk to an independent agent to help you assess your flood-related risks..