California Faces Flood Protection Gap Amid Recent Storms

Recent storms in California have caused significant economic losses, leading to a significant flood protection gap. Only 2% of California residents have purchased flood insurance, leaving 98% uninsured. The National Flood Insurance Program (NFIP) provides limited coverage, with homes in California likely underinsured. Climate-related risks are prompting a re-evaluation of property insurance underwriting and pricing strategies, leading to rising availability and affordability issues for consumers. Some property insurers are withdrawing from or exiting California's market, while others have secured substantial rate increases to continue writing business.