Study: Economic, racial inequality found in FEMA flood zones
An analysis from risQ found that lower-income and non-white communities face a disproportionate burden of uninsured flood risk.
FEMA disproportionally affects non-white and housing cost-stressed communities by failing to invest equitably in pre-disaster measures, says a new report from risQ, Inc.
The analysis from the climate-change risk modeler found that populations that spend the most relative income on housing are 1.5 times more likely than the least housing cost-burdened to be exposed to flood risk not covered by FEMA Special Flood Hazard Assessment (SFHA) 100-year flood zones. FEMA SFHAs are used to determine residential flood insurance requirements for government-backed home loans.
Furthermore, risQ found that non-white populations are more likely to face flood risk not captured by FEMA SFHAs.
Because flood insurance is an option that most homeowners choose not to pick up, risQ’s findings suggest that non-white and financially-pinched populations are more like to be less insured, thus absorbing more flood risk, due to perceived threat levels included in FEMA SFHAs.
Race, economic affluence and FEMA 100-year flood zones
For its study, the firm used its Flood risQ Score that ranks communities in terms of their total flood risk (inland and non-hurricane coastal flood) from 1 to 5. Each one-point increase suggests an approximate doubling of financial risk from floods.
By accounting for population density, total flood risk, and state-level difference with a regression model, risQ estimates that communities with the least affordable housing and least discretionary income are 1.5 times more likely to be under or uninsured due to flood risk not being accounted for by FEMA SFHAs.
risQ also evaluated the correlation between race and flood risk. It found that regardless of the level of flood risk, communities with a smaller white population are more like to be exposed to flood risk not included as SFHA. The firm estimates that Asian, Black, Native American, and Latino populations are 29%, 65%, 70%, and 72%, respectively, as likely as white populations to have their flood risk accounted for by FEMA. This disparity results in
To conclude its analysis, risQ implores FEMA to focus on investments in floodplain modeling in historically disadvantaged areas to create a more equitable program and increase flood insurance accessibility.
“Intentionally or otherwise, the current system for SFHA determination and its role in driving flood insurance uptake has resulted in substantial liabilities and risk in U.S. residential real estate at the individual and collective level,” writes risQ in its report. “This risk systemically and disproportionately impacts less affluent and minority communities. Without an alternate approach, the scale of the risk and the scale of the disparity will only get worse with climate change.”
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