Flash Flood Risk on the Rise

According to FloodSmart.gov, floods are the #1 natural disaster in the United States. Based on annual reports from 2005 to 2016 - the National Centers for Environmental Information summarized flash flood losses to be $16.7 billion and riverine flood losses to be $24.7 billion.  Inland flood losses due to flash flooding continue to rise and during the years 2012-2016 have contributed to 51 percent of annual inland flood loss compared to riverine flood losses of 49 percent.

Although Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRMs) capture riverine type flooding there is not a significant amount of flood studies that were conducted for assessing flash flood risk. Many communities also do not participate in the National Flood Insurance Program (NFIP) and thus there has been no flood studies conducted in these areas by FEMA. Flash Flood Risk Score can help to identify flood risk not provided on FEMA FIRMs and in areas where no riverine flood studies have been done.

New Insight With Flash Flood Risk Score

CoreLogic developed sophisticated methodology to provide insurers with CoreLogic Flash Flood Risk Score (FFRS), an innovative flood scoring product that doesn’t rely on FEMA flood maps, and takes an alternate approach to identify flood risk.

Utilizing a combination of hydrology, meteorological, environmental, and proprietary CoreLogic dataset, FFRS is available for the entire U.S. The combination of these datasets and hydrologic models enable a simple and easy-to-use 1-100 numeric risk score along with risk ratings from Very Low to Extreme.  The risk score and risk rating can be incorporated into an insurer’s underwriting process to help set detailed guidelines and business rules for flood risk exposure.

Risk Score Details

Flash Flood Features

  • Uses 10m elevation data
  • Utilizes hydrological, meteorological and environmental datasets
  • Provides new insight and innovative model to generate an easy-to-use risk score for assessing flash flood risk

Flash Flood Benefits

  • 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

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.

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