{"id":2273,"date":"2026-07-28T06:00:00","date_gmt":"2026-07-28T11:00:00","guid":{"rendered":"https:\/\/blogs.edf.org\/markets\/?p=2273"},"modified":"2026-07-28T11:07:29","modified_gmt":"2026-07-28T16:07:29","slug":"bringing-nature-into-the-nfip","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/markets\/2026\/07\/28\/bringing-nature-into-the-nfip\/","title":{"rendered":"Bringing\u00a0nature into\u00a0the NFIP:\u00a0Rewiring the National Flood Insurance Program pricing and models to\u00a0leverage\u00a0nature-based solutions\u00a0to\u00a0reduce\u00a0flood risk"},"content":{"rendered":"\n

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This blog was authored by: <\/em>Talley Burley<\/em><\/a>, Senior Manager, Climate Risk & Insurance, and <\/em>Kelly Suttles<\/em><\/a>, Adaptation Scientist for Flood Resilience.<\/em><\/p>\n\n\n\n

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Photo: The Mississippi River<\/figcaption><\/figure>\n\n\n\n

Floods are hitting American households and communities more than ever before, and they\u2019re causing costly consequences. Natural solutions like mangroves, wetlands and rain gardens are evidence-backed ways to protect communities from rising floods\u2014but they\u2019re not fully recognized in flood insurance pricing or programs. Environmental Defense Fund\u2019s new report<\/a> explores how we can recognize and price the value of nature into the National Flood Insurance Program, so that we can all better leverage nature to protect people, communities, economies and ecosystems.  <\/p>\n\n\n\n

Recent disasters\u2014including in the Texas Hill Country<\/a> to Southern California<\/a> to New York City<\/a>\u2014show how quickly floods can overwhelm communities. In the United States, flooding is the most common and most expensive natural hazard: Flood damage has cost us $46 billion a year over the last decade, and climate change could increase those damages by as much as one-third by 2050. In response, we need to find ways to redesign and adapt our communities to protect our families, homes, and communities from floods.  <\/p>\n\n\n\n

 To do this we can look to nature, such as wetlands, mangroves, forests and other natural systems that can absorb water, slow runoff, reduce storm surge and limit flooding.  These \u201cnature-based solutions\u201d not only promote resilience but provide co-benefits for people and nature, including improved biodiversity, recreation and well-being. <\/p>\n\n\n\n

We can already see the protective power of nature in action: Recent research by SwissRe shows that natural habitats help to reduce the frequency of insurance losses from floods in coastal Florida by half. Mangroves drastically reduced storm surge and property damage during Hurricanes Irma in 2017 and Ian in 2022 based on analysis by UC Santa Cruz and partners. <\/p>\n\n\n\n

But, despite the evidence that nature-based solutions play an important role in protecting communities from flooding, they aren’t fully recognized in insurance pricing or the models that underpin insurance pricing. We can resolve this by making deeper connections and synergies between the work on the ground and National Flood Insurance Program (NFIP), helping to make sure these investments not only keep communities safe after disasters, but also help to address rising flood insurance costs. <\/p>\n\n\n\n

Because financial support after major floods or storms is usually limited and flood damage is excluded from standard homeowners\u2019 insurance policies, the NFIP provides the majority of flood insurance policies to property owners in the United States. It shapes how communities understand their flood risk, decide where to build, and choose strategies to reduce flooding. The NFIP also influences which investments in flood prevention get rewarded with funding. But the NFIP does not clearly or consistently recognize the full value of nature in reducing flood impacts. <\/strong> <\/p>\n\n\n\n

Without a clearer connection between NFIP and nature, communities may have less incentive to invest in nature as a solution to reduce flood losses and lower costs.  <\/p>\n\n\n\n

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Photo from iStock HildaWeges<\/figcaption><\/figure>\n\n\n\n

Our latest report explores how the models and pricing in the NFIP can better recognize nature as a major tool to reduce flood risk and thereby drive governments and communities to invest in nature as a flooding solution. <\/p>\n\n\n\n

Over the last year, EDF and our partners reviewed the science and engaged with experts across flood insurance, modeling, engineering, conservation and local government to identify strategies to better integrate nature into the NFIP. Four key findings emerged from our research: <\/p>\n\n\n\n