Extreme weather events wreak havoc on a grid not designed to endure their frequency and intensity, but there are solutions to build resiliency. 1. Modernize grid infrastructure; 2. Install more microgrids; 3. Roll out more renewable energy to reduce fossil-fuel dependence
A smart transition of FEMA toward state and local disaster responsibility would encompass 1) reform to the Stafford Act to rebalance federal and state contributions, 2) a restructuring of state disaster relief funds, and 3) a shift toward regionalization of disaster response.
The muni bond market presents an opportunity to finance resiliency in a way that aligns policy-makers, community stakeholders, business interests, and investors. By strengthening local infrastructure to render assets less vulnerable to climate shocks, it can reduce disaster costs for communities.
As floods become bigger and more common, insurance gaps increase costs. Climate-vulnerable mobile homes increase financial risk for communities. Pop up micro-grids offer resilience to vulnerable power grids. ReBuild NC has a deficit of over $150 Million and 1,600 people still displaced.
Many people learn too late that home insurance policies do not cover flooding (only 4% of Americans have flood insurance).
95% of all flood insurance policies are written by the National Flood Insurance Program (NFIP), a program of FEMA. The private markets have the other 5%.
The most vulnerable and challenging communities are those that are rarely hit by flooding, but when the flooding does occur, it's catastrophic.
Legislative reforms to build more resilient communities are critical for reducing the costs to individuals.
Climate-vulnerable mobile homes increase financial risk for communities
Mobile and manufactured homes were disproportionately impacted by Helene and Milton.
14% of homes in Western North Carolina and 11% of homes in Tampa Bay, Florida are mobile or manufactured.
Less stringent building code standards, lack of FEMA dollars benefitting mobile home parks, and low insurance coverage rates for homeowners all drive disproportionate impact.
Local microgrids can ensure U.S. energy resilience amidst climate devastation
After Hurricane Helene hit, disrupting power and essential services, microgrids were deployed to maintain critical services including powering medical clinics, water generators, and communication equipment.
The Disability Resource Center of the Panhandle utilized solar generators and trailers to provide services, such as wheelchair charging, for disabled people.
North Carolina faces deficit of over $150 million and 1,600 people still displaced from disasters over 6 years ago
ReBuild NC has been able to help 2,700 applicants and has withdrawn–voluntarily or involuntarily–4,000 applicants, leaving 1,600 applicants awaiting assistance.
The State Legislature appropriated $273M to Hurricane Helene, but those funds cannot be utilized for previous disasters. There are questions of how the agency will manage the funds considering the history of financial and operational management.
Agency officials attribute the deficit to fluctuating construction costs, the rapid need for building homes, the increasing cost of temporary housing (now at $71.7M) and the slow dispersal of federal funds.
Real estate, historically insulated from disasters impacting markets, is showing early signals of climate risk devaluations
The combination of climate risk, consumer attitudes, and insurance costs are putting some homes on track to become devalued assets. Prices fell most where people were worried about climate change, proving that people’s attitudes toward climate risk has an impact on the market.
An analysis found that Florida property values in 2020 dropped by 5% relative to their pre-2008 recession high.
Historically, home prices rebound after a disaster, but this pattern was broken post-Sandy in 2012.
Between issues of The Epicenter, we'll publish our lists of Curated Insights: relevant reads, podcasts, and resiliency opportunities. These insights and opportunities are compiled based on recency and relevance for The Epicenter's audience overall–some are tied to current events and others offer more evergreen insights. If you find interesting content to share with our audience, please send your favorite finds our way!