The Availability and Impact of Public and Private Funding Following a Natural Disaster: Chicago Federal Reserve

Natural disasters are shocks to income, wealth, and capital, and over the past few decades, according to federal statistics, the number of natural disasters where losses have exceeded $1 billion has been increasing. Homeowner’s insurance is essential for well-functioning property markets because it enables homeowners to cover the cost of repairs following a natural disaster. Yet home insurance is becoming more expensive, and some insurance companies are limiting plan offerings in some states.

In the aftermath of a natural disaster, community banks have the potential to provide liquidity to homeowners who are uninsured or underinsured. But community banks are less likely to have the capacity to lend after large-scale natural disasters, particularly if they are unable to raise sufficient capital. Do community banks play a unique role in lending in the wake of natural disasters? How has the decline of community banking affected post-disaster recovery and economic growth?

On Wednesday, March 5, 2025, at 11:00 am CT, join the Chicago Fed’s Economic Mobility Project for The Availability and Impact of Public and Private Funding Following a Natural Disaster, a virtual event during which Chicago Fed senior economist Daniel Hartley will present results from three of his studies.

The research presentation will be followed by a moderated panel, where scholars and other experts on housing finance, insurance, and credit access will discuss the impacts of the current insurance crisis and potential policy solutions to provide financial stability to homeowners affected by natural disasters.

Click here to learn more and to register.



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