U.S. Faces Rising Flood Risks Amid Decline in Insurance
U.S. Faces Rising Flood Risks Amid Decline in Insurance
US · Published Sep 30, 2026
• Flood insurance coverage in the United States has significantly declined over the past five years, with the number of federal flood insurance policies dropping by approximately 500,000, according to an Associated Press analysis.
• This decline coincides with a 90% increase in the average cost of flood insurance, now at $1,100 per year.

Impact & Risks

The decline in flood insurance coverage leaves millions of Americans vulnerable to financial ruin in the event of flooding. Areas like eastern Kentucky, where only 2.1% of properties are insured despite nearly half being at severe or extreme risk, are particularly affected. Many residents in high-risk areas are low-income, making it difficult for them to afford rising insurance premiums. Without coverage, recovery from flood damage is slow and costly, often relying on limited FEMA assistance or charitable aid. The lack of adequate flood mapping and insurance coverage also increases the risk of displacement for affected families, as seen in the aftermath of the 2022 Kentucky floods, which caused significant damage and loss of life.

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