Forecasts suggest this year's hurricane season could bring lower than average storm activity. But disaster risk is not measured solely by the number of named storms.
It only takes one major flood to expose the vulnerabilities that persist across the US flood protection system. And increasingly, flood losses are not confined to coastal communities or storm surge alone. Flooding driven by heavy rainfall, overflowing rivers, and flash floods are increasingly affecting communities far beyond traditional flood zones, often in places where insurance take-up is low and financial resilience is limited.
This reality highlights an urgent policy challenge; America's flood protection gap continues to widen at a time when economic exposure is growing.
Flooding can happen almost anywhere, yet millions of American households and businesses remain uninsured or underinsured against flood risk. When disasters strike, the consequences extend well beyond individual property losses, which alone are already devastating. Delayed recovery affects local employers, municipal budgets, infrastructure systems, housing markets, and broader regional economic activity.
Insurance plays a critical role in helping individuals, businesses, and communities recover more quickly and reducing long-term economic disruption. Strong insurance participation supports financial stability after disasters, accelerates rebuilding, and reduces reliance on post-event federal assistance. It's an essential component of economic resilience for all Americans.
That's why Congress should advance the bipartisan Community Flood Resilience Act, introduced by Congressman Andrew Garbarino and Congressman Gregory Meeks.
The legislation reflects a pragmatic recognition that resilience requires both physical mitigation and financial preparedness. By allowing a portion of federal flood mitigation assistance funding to support community-based parametric flood insurance solutions, Congress is advancing a thoughtful public-private sector approach to disaster resilience.
This legislation does not replace the National Flood Insurance Program (NFIP). Instead, it acknowledges that public and private solutions can work together to expand protection, improve awareness, and strengthen recovery capabilities. In today's evolving risk environment, collaboration is essential.
Community-based parametric insurance provides funding when predefined conditions are met, such as measured rainfall levels, river heights, or other objective flood triggers. Because payments are tied to those triggers rather than lengthy loss-adjustment processes, communities can access funds much more quickly after a disaster. Faster access to funding can help local governments stabilize essential services, support small businesses, and assist vulnerable populations during the critical days immediately after flooding occurs.
Speed matters after disasters. Delays in recovery funding often translate into prolonged economic hardship for communities already under strain. Parametric insurance policies can deliver payments within 30 days, or less, when the funds are needed the most.
The legislation also emphasizes education, outreach, and transparency. Participating communities must describe how they promote flood insurance awareness, encourage mitigation efforts, and communicate clearly about how these products function alongside traditional coverage. These provisions recognize that resilience begins with understanding what's at risk.
The insurance industry has long played a foundational role in supporting economic growth and recovery following catastrophic events. As risks evolve, innovation in risk transfer and resilience financing will increasingly become important complements to infrastructure investment, stronger building standards, and disaster mitigation programs.
Public-private collaboration will be critical to narrowing the protection gap. Legislation like the Community Flood Resilience Act demonstrates how policymakers can encourage innovation while strengthening community preparedness and preserving the role of insurance in supporting economic resilience.
Resilience is built before disasters through smarter planning, stronger mitigation, and broader financial protection. Public policy that improves flood insurance participation and accelerates recovery better protects homes and businesses, and promotes the long-term economic stability of communities across the country.
As flood risk expands beyond traditional geographic boundaries, policymakers need tools that strengthen both physical resilience and financial preparedness. The Community Flood Resilience Act is a practical way to do both.
