Natural disasters account for much of the damage and destruction of homes in the United States. During the years 1965–1985, 531 major natural disasters occurred in the United States resulting in widespread destruction and loss of life (Rubin et al., 1986). This figure represents federally declared disasters including hurricanes and tropical storms, ice and snow events, earthquakes, dam failures, flooding, high winds, coastal storms, tornadoes, and drought. The resulting expenditures of federal money reached $6 billion, with millions more paid by state and local governments.

The total cost of this destruction is estimated to be even higher, about two and a half times the value of building losses. This final figure includes the individual costs borne by disaster victims themselves, estimated to be an additional 75% beyond government estimated figures (Rubin et al., 1986). During this same period (1965–85), the number of dwellings destroyed and damaged is estimated at 1½ million, with floods accounting for about 750 000 of these losses.