Seen in Insurance Journal:
A new study by RMS, published on the 80th anniversary of the [1927 Great Mississippi Flood], shows that in a repeat of this flood today, the losses would be between $130 billion and $160 billion. Almost two-thirds of the total would be a result of residential damage, with another third from damage to commercial and industrial properties. While there would be some damage to all the states along the lower Mississippi River, Louisiana would sustain nearly 40 percent of the total loss.
Although the extreme river flows that led to the 1927 flood are rare events, research suggests that climate change and global warming are already increasing the potential for exceptional flows on great river basins such as the Mississippi. RMS said. This has an impact on how flood risk should be managed and how levees need to be maintained and strengthened.
The article mentions that only 15-20% of affected properties carry flood insurance, which means that in the event of a megaflood, there would be a lot of pressure to find ways to weasel coverage out of traditional homeowners policies.
Gotta love the threat of extracontractual liability.