The Insurance Information Institute (Triple-I), a US-based trade association representing the insurance industry and providing research and data on risk trends, reports that 2025 saw a rapid succession of deadly floods across the country, underscoring the increasing threat of inland and flash flooding and the continuing importance of adequate flood insurance protection.
In its latest issues brief, Flood Insurance: State of the Risk, Triple-I states that communities from Central Texas to California, North Carolina and New York City experienced extensive damage. In the Texas Hill Country alone, more than 130 fatalities were recorded.
According to Triple-I, flooding linked to tropical systems, severe convective storms and atmospheric rivers led to substantial property losses nationwide. New York City endured repeated flash flood events, while winter storms in California delivered close to half a year’s rainfall in certain areas, prompting mudflows and damage to hundreds of homes.
Triple-I further notes that residents in North Carolina continue to recover from catastrophic flooding associated with Hurricane Helene in autumn 2024. In some of the most severely affected communities, fewer than 1% of households held flood insurance policies, leaving many families reliant on federal disaster assistance or personal savings for reconstruction.
Triple-I highlights that, despite the rising level of exposure, many homeowners consider flood insurance unnecessary unless required by a mortgage lender, and some discontinue cover once their mortgage has been repaid. Citing a 2023 survey conducted in partnership with Munich Re, Triple-I reports that 64% of homeowners believed their properties were not at risk of flooding.
More than half of flood insurance policies in force are issued through the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP), although Triple-I observes that the private market has expanded in recent years. Between 2016 and 2024, private flood insurers increased direct written premiums by nearly 43%, from 3.29 billion USD to 4.7 billion USD, with 79 private insurers accounting for just over 27% of the national market.
Triple-I also points to advances in analytics and data collection as contributing factors in the evolution of the market. Research and modelling, including work by the non-profit organisation Climate Central, are enabling insurers to assess flood exposure with greater precision and to broaden coverage options. Triple-I states that such insights are important for insurers and communities seeking to enhance resilience to future flood events.
In addition, Triple-I references the NFIP’s Community Rating System, which encourages local authorities to adopt floodplain management practices exceeding minimum federal standards by offering premium discounts of up to 45% for policyholders in highly rated communities.
Triple-I cites research indicating that investment in mitigation and resilience measures can yield savings of up to 33 USD in avoided economic losses for every dollar spent. At the same time, Triple-I notes that recent cancellations of programmes such as FEMA’s Building Resilient Infrastructure and Communities initiative and the Environmental Protection Agency’s Community Change Grants highlight the challenges of maintaining consistent funding for mitigation efforts, particularly in vulnerable communities, including Native American populations.
“Flooding is not only a growing threat, but it’s a collective challenge that requires action at every level, from individuals, businesses and government,” added Sean Kevelighan, Triple-I CEO. “Investing in flood insurance and mitigation measures today can dramatically reduce the human and economic costs of tomorrow’s disasters.”
