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Flood endorsements could help close US flood coverage gaps
FEMA data cited in the article shows fewer than 4% of homes have flood coverage, while Munich Re estimates endorsement costs at about $40 to $50 annually versus hundreds or thousands for standalone policies.
Water-related catastrophes are increasingly hitting beyond traditional coastal risk areas, from severe flooding in Kentucky to thunderstorms across the Plains and Midwest, according to Insurance Business. The outlet notes that in 2025, flooding generated billions of dollars in insured losses, yet FEMA data indicate less than 4% of homes currently have flood coverage in place.
Insurance Business highlights that Munich Re US market development manager Seth Piechowski points to the growing share of inland flood claims, saying 40% of NFIP flood insurance claims come from outside special flood hazard areas. The article argues that policyholders may not need to buy a separate flood policy, and that a flood endorsement to an existing property policy can deliver supplemental coverage for many events.
The piece says Munich Re analysis shows that insured US flood losses totaled $319 billion from 2000 to 2024, while uninsured losses were $1.58 trillion, with uninsured losses estimated to rise another 25% by 2050. Within that context, the article says endorsement coverage is typically close to, if not at, replacement cost for many claims because most flood events do not result in total loss.
On cost and process, Insurance Business reports Piechowski estimating endorsement net costs at around $40 to $50 per year, compared with standalone flood policies that can run into the hundreds or thousands annually. The article also says endorsements streamline administration because they are added to an existing policy rather than requiring a separate policy to be bound, maintained, and re-entered with agent and policyholder information.