CPB quantifies financial impact of flood risk on Dutch households

A new report from the Netherlands Bureau for Economic Policy Analysis (CPB) provides the first national estimate of the potential financial losses Dutch households could face from flooding. The study finds that the total expected annual damage from flood events is equivalent to around €290 million, with exposure highly uneven across regions and income groups.

Using detailed geospatial and property-level data, CPB shows that flood risk is concentrated in low-lying areas of Provinces South Holland, Zeeland, and parts of Gelderland, while households in higher regions face minimal exposure. The study highlights that the poorest households, who often live in older or less-protected areas, could be disproportionately affected despite having lower property values. Wealthier households, by contrast, face larger absolute losses but are better positioned to absorb them.

The report also explores how flood risk may interact with the housing market and financial system, noting that uninsured or underinsured losses could amplify existing inequalities and undermine stability in vulnerable regions. CPB concludes that a more transparent assessment of flood risk—supported by better insurance coverage, adaptation incentives, and public communication—is essential to safeguard both households and the broader economy.