Home / Weather / Flood Insurance Gap: Millions Unprotected
Flood Insurance Gap: Millions Unprotected
2 Dec
Summary
- Flood insurance is underutilized despite being a major cause of costly disasters.
- Forty percent of flood insurance claims originate outside high-risk zones.
- Climate change increases the risk and severity of flooding events globally.
A significant portion of American homeowners are exposed to substantial financial risk due to a lack of flood insurance. Experts highlight this as a major coverage gap, emphasizing that flooding is the most frequent and expensive natural disaster across the United States.
Despite warnings that floods can occur anywhere, even in unexpected locations, many people remain uninsured. Notably, a considerable 40% of claims filed with the National Flood Insurance Program originate from areas not officially designated as high-risk flood zones.
The urgency for flood insurance is amplified by escalating climate change. Increasingly erratic weather patterns are leading to more severe storms and heavier rainfall, thereby increasing the frequency and intensity of flood events worldwide. This global trend underscores the necessity for homeowners to reassess their insurance policies.
