MALVERN, PA — Deadly floods swept across the United States in 2025 at an unprecedented pace, exposing gaps in flood insurance coverage and increasing inland and flash flood risks, according to a new issues brief from the Insurance Information Institute.
The report, titled “Flood Insurance: State of the Risk,” cites more than 130 fatalities in the Texas Hill Country and widespread damage from Central Texas to California, North Carolina and New York City.
Flooding tied to tropical storms, severe convective storms and atmospheric rivers caused significant property damage nationwide, the report said. New York City experienced multiple flash floods, while parts of California received nearly half a year’s rainfall during winter storms, triggering mudflows and damaging hundreds of homes.
In North Carolina, residents continue to recover from flooding associated with Hurricane Helene in autumn 2024, according to the report. In some of the hardest-hit areas, fewer than 1% of households carried flood insurance.
The report said many homeowners assume flood coverage is unnecessary unless required by a mortgage lender. A 2023 survey by Munich Re and the Insurance Information Institute found that 64% of homeowners believed their residences were not at risk of flooding.
More than half of policyholders obtain coverage through FEMA’s National Flood Insurance Program, though private insurers have expanded their market share. Between 2016 and 2024, private flood insurance direct premiums increased from $3.29 billion to $4.7 billion, representing nearly 43% growth, with 79 private companies writing just over 27% of the U.S. market, the report said.
The brief also notes that programs such as the National Flood Insurance Program’s Community Rating System offer premium discounts of up to 45% for residents in communities that exceed minimum floodplain management standards. Studies cited in the report show that mitigation investments can save up to $33 in avoided economic costs for every $1 spent.
Sean Kevelighan, chief executive officer of the Insurance Information Institute, said addressing flood risk requires coordinated efforts.
“Flooding is not only a growing threat, but it’s a collective challenge that requires action at every level, from individuals, businesses and government,” Kevelighan said. “Investing in flood insurance and mitigation measures today can dramatically reduce the human and economic costs of tomorrow’s disasters.”
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.