Why Flood Insurance Is Needed Everywhere

Floods Are Happening Across the Country

This summer has brought a relentless series of storms that have overwhelmed communities across the country. In fact, AccuWeather reports that flash flood incidents in 2025 are up 70% compared to the 10-year historical average. What’s driving the increase? Intensifying summer heat is supercharging slow-moving thunderstorms, leading to intense rainfall over short periods, especially when these systems linger over flood-prone terrain or densely built urban areas.

• Texas experienced catastrophic flooding in March, June, and July, including the San Antonio Tempest and the Central Texas Catastrophe, which took the lives of over 130 people in Kerr County alone.
• In New York, the same system that drenched the South swept northward, dropping inches of rain within hours, flooding streets and subway tunnels, and paralyzing airports.
• In July, Chicago experienced a sudden inundation of its major roads when a 1,000-year rainfall event struck.
• Tropical Storm Chantal caused flash flooding in Durham, North Carolina, requiring over 80 emergency rescues.
• The Appalachian Torrent hit Kentucky, West Virginia, and Virginia in February, exposing the dangers of outdated flood maps and neglected infrastructure.
• Even the South Texas borderlands and inland areas, like Oklahoma, Missouri, and Arkansas, saw rivers and drainage systems buckle under historic rainfall.

Dispelling the “Flood Zone” Myth

Too often, flood insurance is not top of mind for homeowners and business owners who believe they’re “not in a flood zone.” In reality, more than 40% of flood claims come from properties outside designated high-risk zones.² One reason is because of outdated flood maps. Also, real estate professionals and lenders may downplay risk to avoid complicating transactions.

But water doesn’t care about zoning. It takes advantage of topography, pressure systems, and blocked drains, and every year, more neighborhoods are learning that the hard way. In 2023, the total claims paid by NFIP amounted to $3.3 billion, a sharp increase from $2.1 billion in 2022.³

Homeowners, Businesses Have Flood Insurance Options 

Fortunately, coverage options have expanded so that flood insurance can become a necessary part of comprehensive risk management:

• FEMA’s National Flood Insurance Program (NFIP) is the nation’s largest single-line insurance program, providing nearly $1.3 trillion in coverage against flood. It provides homeowners with up to $250,000 in building property coverage and up to $100,000 in contents coverage. Businesses can buy up to $500,000 each for building and personal property.
• Private insurers often supplement the coverage amount provided by the NFIP and offer expanded options, including coverage for higher-value homes and additional living expenses not covered by the NFIP.
• Parametric solutions are gaining a growing role in flood risk readiness and mitigation. Instead of relying on damage assessments, these policies pay out when specific triggers, such as a certain river height or rainfall amount, are met. These triggers can be measured by satellite, flood sensors, or local installations, enabling faster, more predictable claims resolution.

A Tax Deduction for Flood Insurance Premiums

The Senate in July reintroduced the Flood Insurance Relief Act in Congress, which would allow consumers to deduct up to $2,500 annually from their federal income taxes for flood insurance premiums paid to the NFIP or to private insurers. If passed, this tax break could make flood insurance more affordable for homeowners and businesses, particularly in moderate- and low-risk areas, to obtain coverage proactively rather than reactively.

Time to Shift the Mindset

It’s time to stop thinking about floods as rare or seasonal events. Flood season now runs from January 1 to December 31. The idea that only beachfront homes or riverfront cabins need protection is dangerously outdated.

Every property owner, whether in the mountains, the suburbs, or an urban environment, explore their flood insurance options. With more choices and evolving technologies like parametric policies, protection is easier to get than ever. But the most important step is the first one: realizing that flood risk is everywhere and coverage is too.