Navigating the Double-Edged Sword of Climate Risk Data

As climate risk data becomes prevalent, American homeowners gain insights into potential hazards but face increased insurance costs. Oregon redraws wildfire maps to avoid backlash, while Florida updates FEMA flood maps, impacting thousands. The data's accuracy and the challenges of affordability raise concerns among residents and insurers alike.

RICHMOND, Virginia, Aug 26 (Thomson Reuters Foundation) – Dulce Suarez-Resnick, an insurance agent in Florida, fields frequent complaints from homeowners about how updated flood maps can lead to increased insurance costs – sparking frustration among residents who feel unfairly targeted.

With more granular climate risk data now available, U.S. homeowners are in a better position to future-proof their properties. However, this awareness often comes with a financial burden. Oregon is redrawing its wildfire hazard maps to reduce backlash and align with new state laws that prevent these maps from being used to increase insurance premiums.

The recent adjustments in FEMA's flood zone maps have affected over 80,000 properties in Broward County, Florida alone. Yet discrepancies between the maps and actual flood events raise questions about their accuracy. Insurers and residents are grappling with how to respond to these evolving risk assessments while addressing the affordability of necessary safeguards.

(With inputs from agencies.)