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Millions remain uncovered as flood risk rises under NFIP
An Associated Press analysis finds only 2.4% of properties nationwide are covered, while 8.4% face severe or extreme flood risk.
The nation’s flood insurance system, the National Flood Insurance Program, is struggling to balance affordability, flood protection, and taxpayer costs, leaving large numbers of Americans exposed as climate change increases flood risk, an Associated Press analysis highlighted in Insurance Journal.
Nationwide, just 2.4% of properties are covered by 4.5 million federal flood insurance policies, but 8.4% of properties are at severe or extreme risk of flooding, according to the analysis.
The coverage gap is especially pronounced in eastern Kentucky, where in some ZIP codes no more than 5% of properties are insured despite hundreds or thousands of buildings at extreme risk, based on federal figures and data provided exclusively to the AP by risk analysis group First Street.
Insurance Journal also notes that parts of southern Louisiana show similar patterns, and it points to factors such as areas that are poorer and flood maps that may not fully convey the severity of risk or drive enough policy take-up. The NFIP was created by Congress in 1968, offering coverage in participating communities that agree to take steps.