Why is it important to finance efforts to make homes more resistant to natural disasters?

In order to incorporate smarter and safer building and renovation methods, develop and enforce new building and zoning codes, implement enhanced land use planning strategies, and develop more cost-effective support programs for low- and moderate-income households, federal, state and local governments and related entities need access to sufficient financial resources. Maintaining and expanding financial resources for pre-disaster mitigation measures will not only save more lives, but it will also reduce the costs of disaster recovery.

What are the financial / economic benefits of financing measures to make homes more resistant to natural disasters?

Research has also shown that money spent upfront on hazard mitigation saves money and resources in the long run. An analysis conducted by the Multihazard Mitigation Council of the National Institute of Building Sciences found that every dollar spent on hazard mitigation saves an average of four dollars in avoided losses in terms of human losses (deaths, injuries, homelessness), direct property damage, reduced cost of emergency response, damage to public and natural resources, and direct/indirect business losses. [1] Other recent studies have provided similar estimates of these cost savings. [2]

Learn more about financing efforts to make homes more resistant to natural disasters. Go back to learn about other policies that make homes more resistant to natural disasters.

[1] Natural Hazard Mitigation Saves: An Independent Study to Assess the Future Savings from Mitigation Activities, Volume 1 -- Findings, Conclusions, and Recommendations. [PDF] 2005. Multihazard Mitigation Council. Washington, DC: National Institute of Building Sciences.
[2] Potential Cost Savings from the Pre-Disaster Mitigation Program. [PDF] 2007. Washington, DC: Congressional Budget Office.