Deadly floods in 2025 caused significant destruction across the United States, highlighting the growing threat of inland and flash flooding and the need for adequate flood insurance. According to the Insurance Information Institute’s (Triple-I) latest issues brief, Flood Insurance: State of the Risk, communities from Central Texas to California, North Carolina, and New York City faced widespread devastation. In Texas Hill Country alone, more than 130 people died due to flooding.
Flooding resulted from tropical storms, severe convective storms, and atmospheric rivers. New York City experienced several flash floods, while California had winter storms that brought almost half a year’s worth of rain to some areas. This led to mudflows and hundreds of homes being affected. North Carolina is still recovering from major flooding caused by Hurricane Helene in autumn 2024. In some severely impacted communities, less than 1% of households had flood insurance coverage. Many families relied on federal disaster assistance or personal savings for recovery.
Despite increasing risks, many homeowners do not consider flood insurance necessary unless required by mortgage lenders. Some even drop their coverage after paying off their mortgages. A survey conducted in 2023 by Munich Re and Triple-I found that 64% of homeowners believed their homes were not at risk of flooding. More than half of all U.S. flood insurance policyholders are covered through FEMA’s National Flood Insurance Program (NFIP), but private insurers are expanding rapidly in this market. From 2016 to 2024, private flood insurance grew nearly 43%, rising from $3.29 billion in direct premiums to $4.7 billion with 79 private companies writing just over 27% of the market.
Advanced analytics and improved data collection efforts—such as those by nonprofit Climate Central—are enabling insurers to better assess flood risk and expand coverage options.
Programs like NFIP’s Community Rating System (CRS) encourage local governments to implement stronger floodplain management practices beyond minimum standards by offering premium discounts up to 45% for homeowners in top-rated communities. Investments in resilience measures have been shown to save up to $33 in avoided economic costs for every dollar spent on mitigation projects or community planning.
Recent cancellations of programs such as FEMA’s Building Resilient Infrastructure and Communities (BRIC) funding and EPA’s Community Change Grants highlight ongoing challenges in securing mitigation funding for vulnerable populations, including Native American communities.
“Flooding is not only a growing threat, but it’s a collective challenge that requires action at every level, from individuals, businesses and government,” said Sean Kevelighan, Triple-I CEO. “Investing in flood insurance and mitigation measures today can dramatically reduce the human and economic costs of tomorrow’s disasters.”
The Insurance Information Institute supports stakeholders including consumers, media and policymakers by providing resources in English and Spanish through its official website. The organization represents more than 50 member companies—including regional, national and global carriers—and aims to provide data-driven insights on risk and insurance topics for education purposes without engaging in lobbying or sales activities (source). Since November 2020, Triple-I has also maintained ties with The Institutes (source). Through research studies, videos and events hosted online (source), Triple-I seeks to advance understanding among consumers, professionals, policymakers and media about insurance-related risks.
