Growing Need for Flood Insurance Across the U.S.

September 5, 2024

As development expands into flood-prone areas, the gap in flood insurance coverage continues to widen. This has led to a significant rise in the number of uninsured homes and businesses, putting many at risk of severe financial loss from flooding. The impact of such events can ripple through entire communities, resulting in broader economic challenges.

Many homeowners and business owners are unaware of the flood risks they face, especially in regions not traditionally seen as high-risk. A common misconception is that standard home or commercial insurance policies cover flood damage, which is often not the case. Flood insurance must typically be purchased separately, either through a private flood insurance carrier or the National Flood Insurance Program (NFIP).

Despite efforts by government agencies, mortgage brokers, and insurance carriers to anticipate and mitigate weather-related disasters, unexpected events continue to have long-lasting effects. The Federal Emergency Management Agency (FEMA) provides tools like Flood Maps to help individuals, businesses, and city planners assess risk, but staying updated is a continuous challenge. FEMA emphasizes the importance of community involvement in submitting accurate and current information about regional flooding on their Flood Maps webpage.

FEMA defines areas with a 1% or higher annual chance of flooding as high-risk. Properties in these zones have at least a one-in-four chance of flooding during a 30-year mortgage period. Given the unpredictability of weather, even areas not usually flagged for flooding can be affected by severe weather events.

By consulting with an independent insurance agent about flood insurance, you can better understand the policies available to mitigate potential flood damage and choose the best coverage for your needs. Recognizing the risks associated with a changing climate is crucial to protecting your home or business.

Reach out to your Robertson Ryan Insurance Agent to discuss the best flood insurance options for your specific situation. Preparing today provides peace of mind, no matter what the future holds.

Contact your agent or get in touch with us here.