section_path: Negative impacts/Economic impacts
section_name: Economic impacts
paragraph_text: Economic impacts
  
  The primary effects of flooding include loss of life and damage to buildings and other structures, including bridges, sewerage systems, roadways, and canals. The economic impacts caused by flooding can be severe.
  
  Every year flooding causes countries billions of dollars worth of damage that threatens the livelihood of individuals. As a result, there is also significant socio-economic threats to vulnerable populations around the world from flooding. For example, in Bangladesh in 2007, a flood was responsible for the destruction of more than one million houses. And yearly in the United States, floods cause over $7 billion in damage.
  
  Flood waters typically inundate farm land, making the land unworkable and preventing crops from being planted or harvested, which can lead to shortages of food both for humans and farm animals. Entire harvests for a country can be lost in extreme flood circumstances. Some tree species may not survive prolonged flooding of their root systems.
  
  Flooding in areas where people live also has significant economic implications for affected neighborhoods. In the United States, industry experts estimate that wet basements can lower property values by 10–25 percent and are cited among the top reasons for not purchasing a home. According to the U.S. Federal Emergency Management Agency (FEMA), almost 40 percent of small businesses never reopen their doors following a flooding disaster. In the United States, insurance is available against flood damage to both homes and businesses.
  
  Economic hardship due to a temporary decline in tourism, rebuilding costs, or food shortages leading to price increases is a common after-effect of severe flooding. The impact on those affected may cause psychological damage to those affected, in particular where deaths, serious injuries and loss of property occur.