Floods Are Getting Worse, But Americans Still Aren’t Protecting Themselves—Here’s Why That Needs to Change

Every year, we see catastrophic floods cause billions of dollars in damage.

And yet, less than 10% of homeowners in coastal communities have flood insurance.

Take Kentucky, for example. Recent flooding caused over $1 billion in damage—and you’d think that would have scared homeowners into getting coverage.

But guess what? Flood policy purchases in Kentucky and neighboring states are still below 6%.

🚨 Why? 🚨

Because homeowners believe myths about flood insurance—myths that leave them financially exposed when disaster strikes.

“Doesn’t My Homeowners Insurance Cover Flooding?”

This is the biggest and most dangerous assumption people make.

It’s also completely false.

Don’t believe me? Go find your homeowners policy. Flip a few pages back to the “Exclusions” section.

You’ll find a long list of things your policy doesn’t cover, including:

❌ Flooding (listed as the #1 exclusion for a reason)
❌ Landslides, earthquakes, and ground movements
❌ Mold, termites, and infestations
❌ Power surges and outages
❌ Home-based businesses
❌ Government actions and war

Why isn’t flooding covered? Because insurance companies know it’s the most common and most expensive disaster homeowners face.

That’s why flood insurance exists—and why skipping it is a massive financial risk.

“Flooding Only Happens Near Lakes, Rivers, or the Ocean.”

🚨 FALSE. 🚨

Every time a new development is built, it changes how water drains in the area.

More pavement = less natural absorption. That means water has to go somewhere—and that somewhere might be your living room.

💡 Fact: Many of the nation’s dams and levees are in desperate need of repair and could fail under extreme weather conditions.

💡 Example: The Oroville Dam crisis in California forced the evacuation of 180,000 people when heavy rains nearly caused a dam collapse.

Do you think all of them had flood insurance?

Nope. Less than 14,000 had any coverage at all.

“If I Needed Flood Insurance, My Lender Would Have Required It.”

Again—🚨 WRONG. 🚨

FEMA’s flood maps determine whether lenders must require insurance.

But here’s the dirty little secret: FEMA’s flood maps are outdated, incomplete, and politically influenced.

💡 Fact: Between 1996 and 2019, 99% of U.S. counties experienced flooding.

💡 Fact: The average flood claim is $52,000—more than the entire annual salary of most Americans.

💡 Fact: Nearly every home in the U.S. is at risk of flooding. Even if you live inland, heavy rains, drainage issues, and poor infrastructure can put your home underwater—literally.

“Flood Insurance Is Too Expensive—I’m Not in a High-Risk Zone.”

Let’s do some math.

💰 The average flood claim = $52,000
💰 The interest on a loan to cover damages = $6,878+ (if paid off fast)
💰 The hassle and emotional toll of post-flood cleanup = priceless

Now compare that to:

✔️ The average cost of flood insurance = $909 per year
✔️ That’s just $75 per month

What sounds smarter? Paying $75/month… or taking out a massive loan and dealing with years of stress and financial recovery?

“If a Flood Happens, the Government Will Bail Me Out.”

💥 Not how this works. 💥

Let’s talk about Hurricane Ida—the last major flood event.

🚨 Thousands of homeowners were left with flooded basements.
🚨 13 people lost their lives.
🚨 President Biden declared an emergency—but that didn’t mean homeowners got a free pass.

Here’s what happened instead:

💰 The government offered up to $36,000 in FEMA grants. Sounds good, right?

💥 Wrong.

💰 Many homeowners got much less than $36K.
💰 Most still had to take out loans to cover repairs.
💰 FEMA grants were automatically applied to existing disaster loans—so homeowners barely saw any relief.

If these homeowners had flood insurance, they could have avoided the stress, delays, and debt.

“Flood Insurance Only Comes from the Government.”

🚨 FALSE. 🚨

For decades, the National Flood Insurance Program (NFIP) was the only option.

But since 2012, the private flood insurance market has exploded.

And guess what? Private policies are often cheaper and better.

Here’s why:

✔️ Private flood insurance often costs 20-50% less than NFIP.
✔️ NFIP caps coverage at $250K for your home and $100K for contents. Private flood insurance can go up to $2.5 million or more.
✔️ NFIP has strict payout rules. Private insurers often have broader definitions of what qualifies as a flood.
✔️ Private insurers offer additional benefits, like temporary living expenses if your home becomes unlivable.

So… What’s the Smart Move?

✅ Find out if you’re overpaying for NFIP.
✅ See if you qualify for private flood insurance at a lower rate.
✅ Make sure your coverage is actually enough to protect you.

At Flood Nerds, we do all of this for free.

Your next move is simple: