The recent history of flooding suggests the attention the insurance industry
pays to it will have to increase. An increasing degree of regularity and
severity make flooding an issue that developers of renewable projects
must pay attention to.
Historically, claims for flooding on renewable energy projects have occurred
as the result of windstorm. As the threat of windstorm increases, so does the threat of flooding. In recent years, Hurricanes Harvey, Irma, Maria, Matthew
and Florence have made insurers rethink the way they manage flood risk.
The severity of these storms has been matched by the significant flooding
often leaving sites unreachable for days; in these instances, the damages
were not able to be assessed until the floodwaters subsided. Developers
building in these zones must design for the climate of the future. If current
trends continue, it is likely that the strength of perils affecting these projects
will change during its 25-year lifecycle, and developers should consider the possibilities of the more extreme modelled predictions.