Flooding and Extreme Weather: The Urgent Need for Comprehensive Planning and Adequate Insurance Coverage

Flooding in Kentucky: A Record-Breaking Disaster

Recent flooding in Kentucky has been described as one that will 'go into the record books,' according to the state's Emergency Management Director Michael Dossett. At least 49 counties have issued disaster declarations following days of rain that dumped four to seven inches across a wide stretch of the state, pushing rivers to levels not seen for decades.

The Importance of Resilience Planning and Insurance Coverage

Extreme weather events, such as these floods and last month's winter storm that left dozens of Texans dead, millions without power, and nearly 15 million with water issues, underscore the importance of resilience planning and of homeowners and businesses having appropriate insurance coverage. About 90 percent of all U.S. natural disasters involve flooding, causing billions of dollars in losses each year. According to FEMA, one inch of flood water can cause as much as $25,000 in damage to a home.

The Flood Protection Gap and the Need for Change

Flood damage is excluded from coverage under standard homeowners and renters insurance policies. However, coverage is available from the National Flood Insurance Program (NFIP) and from a growing number of private insurers. Many people believe they don’t need flood insurance if the bank providing their mortgage doesn’t require it; others assume their homeowners insurance covers flood damage; others think they cannot afford it. As a result, a substantial protection gap exists. A recent analysis by the nonprofit First Street Foundation found the United States to be woefully underprepared for damaging floods, identifying 14.6 million properties across the country at substantial risk, of which 5.9 million property owners are currently unaware of or underestimating the risk they face.

In conclusion, the current system is not sustainable without changes. FEMA's Risk Rating 2.0 initiative aims to make flood insurance rates more accurately reflect insured properties’ individual flood risk. The most cost-effective way for families and businesses to mitigate flood risk is insurance. If it can rain where you are, it can flood where you are. Therefore, whether you're a homeowner, renter, or business owner, get flood insurance.