Wetland Loss Linked to $10 Billion Increase in US Flood Insurance Claims

Economic Impact of Wetland Loss

The destruction of wetlands in the United States has contributed to an increase in flood insurance claims totaling approximately $10.1 billion over the last 40 years. According to a peer-reviewed study conducted by scientists at the University of North Carolina at Chapel Hill, wetland loss since 1985 has increased claim amounts by roughly 9%.

The research specifically quantified the effects of wetlands in reducing riverine flood losses across the USA using annually observed changes in wetland area between 1985 and 2023. The study found that insurance claim amounts for individual properties increase by 0.01% to 0.03% for every hectare of upstream wetland loss.

Legal Shifts in Federal Protection

The economic risks associated with wetland loss coincide with a reduction in federal oversight. In 2023, the U.S. Supreme Court issued a majority opinion in *Sackett v EPA* that drastically scaled back federal protections for nontidal wetlands. This ruling limited the scope of what is considered a "water of the United States" (WOTUS), thereby reducing the number of ecosystems eligible for critical habitat and flood protection under federal law.

Further regulatory changes are pending. A proposed rule from the Trump Administration would require a wetland to possess long-term surface water to qualify for protection. According to estimates, if this rule goes into effect, up to 91% of non-tidal wetlands could be classified as non-WOTUS wetlands.

Environmental and Climate Risks

Scientists warn that the loss of these natural buffers is expected to worsen in tandem with climate change. Wetland conservation is described as a potentially effective but undervalued strategy for managing the growing flood risks associated with shifting climate patterns.