California homeowners found that they too were vulnerable to flood losses after Tropical Storm Hilary dropped almost one year’s worth of rain on Palm Springs on Aug. 20 in what is usually a dry month. However, less than 2% of California households carry flood insurance, and flood losses are not covered under standard homeowners insurance policies.
“Nowhere is safe from flooding in California today,” said Firas Saleh, director of product management at Moody’s RMS. “Rainfall can happen anywhere. That means that these areas are becoming more and more vulnerable to flooding because of the change in the frequency and intensity of rainfall.”
FEMA data showed that only 167 of almost 24,000 households in Palm Springs had federal flood insurance at the end of July. California Department of Insurance Deputy Commissioner Michael Soller said the state “has been working to increase consumers’ awareness of flood insurance protection gaps.”
