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Flood losses are spreading into lower-risk areas with weaker coverage
Aon data shows US flooding caused an estimated $10.3 billion in economic losses across 15 major catastrophe events in 2025, including $6.2 billion in insured losses.
Flood risk is becoming harder to confine to the areas traditionally viewed as most exposed, as losses increasingly show up in lower-risk places where flood insurance take-up can be weakest, according to Insurance Business.
The outlet cites Aon data compiled by the Insurance Information Institute, saying US flooding caused an estimated $10.3 billion in economic losses across 15 major catastrophe events in 2025, including about $6.2 billion in insured losses.
It also notes NOAA’s characterization of 2025 as a year of widespread flooding across every season and region, alongside a record pace of flash flooding warnings, with July generating 1,434 flash flood warnings, the second-highest July total in 40 years.
The article adds that the pattern has continued into 2026, including Tropical Storm Edouard bringing heavy rainfall to Texas in early September and causing significant flash flooding in the eastern part of the state.