Flood remains the most underinsured major peril in the United States -- and the protection gap is not closing fast enough.
The combination of NFIP coverage limitations and inconsistent private flood market availability leaves a substantial portion of at-risk homeowners exposed. Many do not discover the gap until they file a claim after a significant flood event.
Risk communication is a central challenge. Standard homeowners policies do not cover flood, but that fact does not register with many policyholders until it is too late. Carriers and agents who proactively surface flood risk at point of sale and renewal are providing genuine value -- and reducing the likelihood of a post-loss coverage dispute.
Private flood market growth in 2025-2026 is encouraging, but product design, pricing adequacy, and reinsurance availability remain barriers to meaningful scale. The carriers that crack the affordability-coverage balance will find a significant unmet market.
#FloodInsurance #NFIP #PAndC #ProtectionGap #HomeownersInsurance
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