Wetland losses jack up insurance bills, study says

By Saqib Rahim | 06/03/2026 06:35 AM EDT

Insurance claims increased by $10 billion since 1980 due to the disappearance of those ecosystems.

Floodwater surrounds homes in Paducah, Kentucky, after heavy rain.

Floodwater surrounds homes in Paducah, Kentucky, after heavy rain last year. Scott Olson/AFP via Getty Images

Relaxing federal wetland protections could magnify flood damage from extreme weather events.

A new study in Nature Water says wetlands prevent billions of dollars in damage by soaking up excess water when heavy storms inundate rivers and streams in residential areas. But when development intrudes into wetlands — a policy scenario the Trump administration is considering — flood damages tend to increase, the study says.

Wetland loss has increased flood insurance claims by $10 billion since the 1980s, the research says, adding that weaker protections for these natural features could make losses “orders of magnitude greater.”

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Flooding near rivers is “relatively understudied” compared to coastal flooding, said Jesse Gourevitch, a co-author and former economist with the Environmental Defense Fund, in an email. The research is accompanied by a mapping tool meant to help policymakers understand how wetlands affect flood risk in their jurisdictions.

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