Whenever a strong hurricane or storm causes significant flooding, there is often talk of a 100-year flood.

When people hear this term they think a flood of that magnitude occurs once every hundred years, so they should be safe from harm for the next hundred years. Unfortunately, some base their decision to buy flood insurance on this false belief, putting them at risk of a catastrophic loss.

The reality is much different. It involves frequency analysis and statistical probability. In order to determine the frequency of floods of a given level, scientists create a history of the area. Generally, scientists start with a minimum of 10 years of information. The longer the record the better and the more accurate predictions are. They look at the frequency of different size floods and the average number of years between them to develop the probability of a given size flood in a particular year.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.  

Catastrophe & Restoration
Commercial Lines
E&S/Specialty
Personal Lines
Weather Risk