“It’s like a Jenga game… the main block that’s holding everything up has been FEMA.” – 01:08
Jeff Gitterman, CEO of Gitterman Asset Management, joins Remy Blaire to discuss the report released by First Street, a climate risk research organization, which sheds light on alarming issues surrounding FEMA and the National Flood Insurance Program. The report reveals that nearly 13 million properties are at high risk of flooding, with a significant portion—about 10 million—being outside the officially designated high-risk flood zones. This situation raises concerns about the adequacy of insurance coverage for these properties, as many are either underinsured or completely uninsured.
Jeff breaks down the implications of potential cuts or the elimination of FEMA, which could severely undermine national resilience to flooding. Jeff likens the current state of flood risk management to a precarious game of Jenga, where FEMA serves as a crucial block supporting the entire structure. With recent announcements from the administration indicating a pullback on FEMA’s operations, the pair explore the cascading risks that could affect homeowners, banks, and municipalities alike.
The pair also touches on the role of the insurance industry in this landscape. Jeff argues for a radical overhaul of how homeowners insurance is structured, advocating for state-level adjustments to premiums based on risk and incentivizing homeowners to implement resilience measures. He points out that private insurers currently cover only a small fraction of flood risk, and without FEMA’s backing, many homes could become uninsurable.