The Insurance Information Institute (Triple-I), a U.S. trade association that represents the insurance industry and provides risk trend research and data, reports that a series of deadly floods will occur across the country in 2025, highlighting the growing threat of inland flooding and flash flooding and the continued importance of adequate flood insurance protection.
Triple-I noted in its latest newsletter, “Flood Insurance: Risk Profile,” that communities from central Texas to California, North Carolina and New York City suffered widespread damage. In the Texas Hill Country alone, more than 130 people died.
According to Triple-I, flooding associated with tropical systems, severe convective storms, and atmospheric rivers caused significant property damage nationwide. New York City has been hit by repeated flash floods, while winter storms in California brought nearly half the year’s worth of rain to some areas, triggering mudslides that damaged hundreds of homes.
Triple-I further noted that North Carolina residents continue to recover from catastrophic flooding from Hurricane Helene in the fall of 2024. In some of the hardest-hit communities, less than 1% of households hold flood insurance, leaving many families relying on federal disaster aid or personal savings to rebuild.
Triple-I highlights that despite rising risk levels, many homeowners believe there is no need to purchase flood insurance unless required by their mortgage lender, and some discontinue coverage once their mortgage is paid off. Citing a 2023 survey conducted in partnership with Munich Re, Triple-I reported that 64% of homeowners believed their properties were not at risk of flooding.
Although Triple-I has observed that the private market has expanded in recent years, more than half of all active flood insurance policies are issued through the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP). Between 2016 and 2024, direct written premiums by private flood insurers increased by nearly 43%, from $3.29 billion to $4.7 billion, with 79 private insurers accounting for just over 27% of the national market share.
Triple-I also cited advances in analytics and data collection as contributing factors to the market’s evolution. Research and modeling, including the work of the nonprofit Climate Center, allow insurers to more accurately assess flood risk and expand coverage. Triple-I notes that such insights are important for insurers and communities seeking to increase their resilience to future flood events.
Additionally, Triple-I cited the NFIP’s Community Rating System, which encourages local authorities to adopt floodplain management practices that exceed minimum federal standards, providing policyholders in high-rated communities with premium discounts of up to 45 percent.
Triple-I cites research showing that for every $1 spent investing in mitigation and recovery measures, up to $33 can be saved in avoided financial losses. Meanwhile, Triple-I noted that recent cancellations of programs such as the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities initiative and the Environmental Protection Agency’s Community Transformation Grants highlight the challenges of maintaining ongoing funding for mitigation efforts, particularly in disadvantaged communities, including Native Americans.
Sean Kevelighan, CEO of Triple-I, added: “Flooding is not only a growing threat, but a collective challenge that requires action at all levels, including individuals, businesses and governments. “Investing in flood insurance and mitigation measures today can significantly reduce the human and economic costs of tomorrow’s disasters.”
