A recent study by Allstate, the U.S. Chamber of Commerce, and the U.S. Chamber of Commerce Foundation found that for every $1 spent on climate resilience and preparedness, communities can save $13 in damages, cleanup costs, and economic impact.

The study modeled 25 disaster scenarios with damage/cleanup costs ranging from $1 billion to $130 billion in areas across the United States. According to the study, each model revealed substantial economic savings resulting from prior investments in disaster resiliency programs and resources. This preserved millions of jobs and household incomes, while reducing the number of people displaced from their homes and maintaining production, enabling local economies to more quickly rebound than they otherwise would have.

The study found that, on average, for every $1 spent on resilience, communities save $7 on economic costs alone. Thus, if a large city invests $10.8 billion in resilience and preparedness before a Category 4 hurricane, it would save 184,000 jobs, $26 billion in GDP, and $17 billion in earned income for its residents.

U.S. Chamber of Commerce Senior Vice President for Policy Marty Durbin commented, “Each scenario we modeled demonstrates that investing in resilience has remarkable benefits for communities. This important study helps identify opportunities to reduce the economic costs of natural disasters, including job loss, lost income, reduced economic activity, and loss of workforce.”

Allstate and the US Chamber of Commerce note that weather-related catastrophes are increasing in frequency and severity and that billion-dollar disasters “are now the norm." With this, they say, it is essential for government, businesses, and households to invest in resilience.

“The economic benefits of investing in resilience are clear. It’s also essential to the availability and affordability of insurance for years to come,” said Allstate Chief Sustainability Officer Elliot Stultz. “As communities struggle with the impacts of more frequent severe weather, investments in resilience today can empower them to prosper.”

Resiliency investments that communities, families, and businesses are advised to make include: green infrastructure to manage stormwater runoff and protect floodplains; wetlands restoration to allow natural areas to store excess water; barrier walls; floodgates and levees to prevent floodwaters from harming structures; and enhanced evacuation routes for floods or hurricanes.

The study also recommends investing in structural improvements and accessibility updates to homes and businesses, elevated electrical systems and appliances above potential flood levels, flood barriers, sump pumps and backflow valves, removal of flammable materials near homes, and fire-resistant roofing or landscaping.

The big takeaway from the study is that it is important for government and business decision- makers to understand how much these types of investments can make a difference in communities as major weather events continue to slam regions throughout the country.