Vehicle flood damage and household disaster assistance in the United States

Steven F. Koller

Risk Management and Insurance Review, 2025, vol. 28, issue 1, 67-106

Abstract: Vehicles are the most commonly‐owned nonfinancial asset in the United States (US) and represent a relatively high share of net worth for low‐wealth households. Despite rising flood exposure from urban development patterns and climate change impacts, few studies have considered household vulnerability to vehicle flood damages. This study conducts a first analysis of Federal Emergency Management Agency (FEMA) Individuals and Households Program (IHP) Transportation Assistance (TA) data representing the full available universe of applications submitted and awards disbursed with reported vehicle flood damages during presidentially‐declared flood disasters. Between 2007 and 2022, FEMA awarded more than $160 million to applicants who experienced uninsured vehicle flood damages. More than half of applicants were renter households, and nearly two‐thirds reported income of $30,000 or less per year. Among recipients, the median IHP award represented approximately 33% of median annual household income. Lower‐income applicants were relatively more likely to receive a FEMA IHP TA award and less likely to receive a Small Business Administration disaster loan. Flood depth at primary residence is positively associated with TA award amount, though some awardees reported no flooding at home. The study identifies insurance coverage gaps, risk‐tolerant behavior, and limited financial support from Federal programs as contributors to vehicle owner financial vulnerability vis‐à‐vis flood hazard.

Date: 2025
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https://doi.org/10.1111/rmir.70002

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Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:28:y:2025:i:1:p:67-106

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