Hydrological, Meteorological and Environmental Datasets
Used to Fill in Flood Risk Assessment Gaps to Provide the Flash Flooding Risk for a Single Property or a Portfolio of Locations.
Floods are the #1 natural disaster in the United States1. From 2005 to 2012 the National Weather Service (NWS) and National Climatic Data Center (NCDC) summarized flood damages incurred from riverine and flash flooding to be $23.7 billion dollars2. Due to the short amount of time needed for a flash flood to occur, there is little opportunity to prepare or mitigate against it, which results in a high risk for loss and extensive property damage.
Additionally, many communities do not participate in the National Flood Insurance Program (NFIP), therefore, no flood studies have been conducted in these areas leaving the flood risk unknown. Essentially, FEMA 100-year flood zones do not comprehend flash flooding. For this reason, flash flood risk assessment cannot be ignored.
New Insight with Flash Flood Risk Score
CoreLogic developed sophisticated methodology to provide insurers with CoreLogic Flash Flood Risk Score, an innovative flood scoring product that doesn’t rely on FEMA flood maps, and takes an alternate approach to identify flood risk.
FFRS provides flooding detail in areas where flooding resources are traditionally unavailable. More specifically, FFRS helps assess whether a flash flood component is identified, particularly in areas where CoreLogic Flood Risk Score is not available due to the flood zone not being mapped—in zones D and N. Essentially, FFRS fills in the flood risk assessment gaps where the previous focus was only on riverine and coastal flooding, and no initial flood insurance studies were ever conducted.
Utilizing a combination of hydrology, meteorological and environmental datasets, FFRS is calculated for the entire U.S. using a 10 meter grid. It generates a simple and easy to use 1-100 numeric risk score along with risk ratings from Very Low to Extreme. This risk score and risk rating can then be incorporated into the insurer’s underwriting process to help set detailed guidelines for identifying flash flood risk exposure.
Key Features of Flash Flood Risk Score:
- Offers a 10 meter granularity
- Utilizes hydrological, meteorological and environmental datasets
- Data utilized includes intense rainfall and frequency, soil hydro groups, ground elevation, flow accumulations and catchment slopes
Key Benefits of Flash Flood Risk Score:
- Provides a scoring component to assess a single property or entire portfolio for flash flood risk
- Allows insurers to mitigate the number of claims for flash flood risk
- Provides new insight and innovative models for flash flood risk
Flash Flood Risk Score—One Size Fits All Insurers
P&C: Evaluate a single property or an entire book of business for flash flood risk exposure to improve your loss ratio.
E&S: Account for a higher level of flash flood risk beyond riverine flooding.
Commercial Lines: Be better prepared for flash flood loss, especially for policies with high hazards and low flood ratings.
Auto: Understand commuter risk for the auto policy holder, including home to office, nearby flash flood areas and areas near home. Write sound auto policies and avoid auto claims due to flash flooding.
The Right Solution for Better Coverage
Insurers want to provide the best coverage for their clients, while only writing properties that are good risks for their books of business. Many also don’t realize that they are covering losses that could be more clearly understood with the right flood risk model. Whether using an aggregated or by-peril rating approach, CoreLogic can help you understand flash flood risk at the most granular level possible.
- FloodSmart.gov, 2014.
- National Weather Service, Summary of Natural Hazard Statistics in the United States from 2005-2012.