Systemic Financial Risk Arising from Residential Flood Losses.

ABSTRACT: Direct damage from flooding at residential properties has typically been categorized as insured, with liabilities accruing to insurers, or uninsured, with costs accruing to property owners. However, residential flooding can also expose lenders and local governments to financial risk, though the distribution of this risk is not well understood. Flood losses are not limited to direct damages, but also include indirect effects such as decreases in property values, which can be substantial, though are rarely well quantified. The combination of direct damage and property value decrease influences rates of mortgage default and property abandonment in the wake of a flood, creating financial risk. In this research, property-level data on sales, mortgages, and insurance claims are used in combinati

SUBMITTER: Thomson H 

PROVIDER: S-EPMC10162782 | biostudies-literature | 2023 Apr

REPOSITORIES: biostudies-literature