Lisa Little

Federal flood insurance makes coverage accessible, yet subsidies can lower the true cost of owning in risky coastal and waterfront areas nationwide.
Affordability is the bigger gap: in low-income neighborhoods, >90% of households are estimated underinsured, leaving flood losses harder to absorb after disasters.
Only ~37% of policyholders pay <$1K yearly, so some owners skip coverage or choose lower-premium plans with less disaster protection for recovery.
Severe repetitive loss homes are ~1% of insured properties but historically drew ~30% of claims, showing why mitigation support matters for safety.
Full-risk pricing may not arrive until ~2037; assistance, mitigation aid, and equitable buyouts can support safer low-income choices nationwide as transition continues.

US Flood Insurance Faces Affordability Test

Standard homeowners policies generally exclude flooding, so owners often need separate flood insurance or a provider endorsement to protect homes and belongings.
Covered flooding can stem from blocked drainage, storm surges, dam failures, heavy rain, flash floods, melting snow, and tropical storms, depending on policy terms.
Policies typically split protection between dwelling coverage for structures and personal property coverage for items like clothing, electronics, furniture, and portable appliances.
Key exclusions include preventable mold, moisture, cash, precious metals, landscaping, pools, decks, vehicles, business interruption, plus flood-triggered landslides or mudslides remain excluded.
Most standard policies begin after a 30-day waiting period; renters can buy contents coverage, and disaster grants do not replace standard flood insurance.