Kingsview CIO Scott Martin On Fox Weather Live – 4.10.25

Click here to listen to the full interview.

STEVE BENDER:  Yeah, and Scott, when we think about flooding—it’s so widespread in its impact. There’s a ripple effect. These floodwaters eventually make their way down the Mississippi River into the Gulf, causing weeks of shipping delays for companies that rely on roads and river barges—the true backbone of the Midwest economy.

Talk about some of the domino effects in that industry, because it often feels like it’s overlooked.

SCOTT MARTIN:  It does, Steve. And I think what gets overlooked is the residual effect. Like you mentioned, delays that start as weeks can turn into months. That kind of long-term disruption often gets forgotten.

Also, there’s pressure on existing routes already handling production and transportation. So when those are overloaded or blocked, you have to make room elsewhere, which affects other industries that depend on those same routes.

So, when things shut down, people are not only out of work temporarily, but there’s also a long-term economic impact on those communities.

STEVE BENDER:  And Scott, let’s look at the tornado aspect. The visuals are gut-wrenching. A new study from the Journal of Applied Meteorology and Climatology says that Tornado Alley is shifting eastward—hitting places like Tennessee, Kentucky, Texas, and Oklahoma.

We’re seeing more tornadoes in those states now. So, naturally, these newly exposed areas are demanding storm shelters. But how equipped are these local governments to pull together the money needed to build those shelters?

SCOTT MARTIN:  Not very equipped, Steve. As Tornado Alley shifts, some local governments and residents have responded better than others. But let’s face it—there’s been more damage in the last few years than in previous years.

So these local economies and residences are experiencing more destruction than expected. Now, governments are facing pressure to help people rebuild, offer financial relief, and get the local economy moving again.

At the federal level, there’s more responsibility now, especially in areas not traditionally used to this kind of severe weather. As these changes become more recognized, hopefully more resources will follow. But right now, it’s a major adjustment period.

STEVE BENDER:  And Scott, even if they do get those shelters built, sadly, when people come back home, the damage is often irreversible. They’ve lost everything because of these violent tornadoes or severe flooding.

FEMA says only about 30% of homes in high-risk areas have flood coverage. A lot of people don’t realize that standard homeowners insurance doesn’t cover flooding.

With storms hitting the same spots repeatedly, it’s clearly taking a toll on people. Take a listen to this—we’ll get to the sound in a moment. But overall, what ends up happening is that people get the basic insurance, not realizing it doesn’t cover flooding—for their home or car.

You and I know this from living in Florida. So what’s the impact of the frequency of these storms on insurance companies and prices?

SCOTT MARTIN:  Several things, Steve. As that homeowner mentioned, the availability of insurance is scarce—or at least, it’s become a new process entirely for many. So, cost is one thing, but the actual coverage—what’s included or excluded—is another.

Some people can’t afford the coverage, or there’s so much destruction they just move out. That creates a relocation effect, which impacts both the area they leave and the one they move into.

Insurance companies, like we’ve seen in Florida, can become so financially burdened that they leave the state altogether. The few that remain raise prices significantly—like we’ve seen in California—because they’re trying to cover massive losses.

STEVE BENDER:  And when people think about flood zones, they think of homes—but what about cars? After the floodwaters recede, people realize their cars won’t even start. And standard car insurance often doesn’t cover water damage.

So what kind of impact does that have on car insurance?

SCOTT MARTIN:  That’s another layer, Steve. People end up needing an additional policy that they likely didn’t plan for in their budget.

We’ve seen situations where people thought they had flood or wind coverage—but because of certain exclusions in their policy, the damage wasn’t covered.

Having to carry multiple policies for different types of disasters is financially and mentally taxing. It can push people to consider relocating entirely, especially if the cost to simply live in that area becomes unsustainable.

And that has a ripple effect on the local economy—and beyond.

STEVE BENDER:  A good reminder for everyone at home—it’s time to double-check your insurance policy. See what it covers as we head into the heart of the severe weather season—and hurricane season right after that.

Friend of the show, Scott Martin—great to see you. Thanks for being with us.

SCOTT MARTIN:  See you, man.