Most flood insurance is required for properties in high-risk areas, especially those with government-backed mortgages, with FEMA's National Flood Insurance Program being the primary provider since private insurers rarely offer coverage in these zones.

Flood insurance premiums have surged in some regions, such as Louisiana's Plaquemines Parish, where residents face costs exceeding $5,400 annually, posing a significant financial challenge for lower-income homeowners.

The National Flood Insurance Program, established in 1968, provides federal flood coverage but has seen rising costs that make it increasingly unaffordable for many residents.

Experts suggest that expanding the number of people with flood insurance could reduce overall costs and foster more competition in the market.

A common misconception that flood insurance is unnecessary for those outside designated flood zones contributes to low policy uptake, despite flooding risks existing across many areas.

Encouraging broader adoption of flood insurance could lower premiums and attract private insurers, but skepticism remains among homeowners who believe they are not at risk.

Many homeowners, especially those who have paid off their mortgages, choose not to buy or drop flood insurance, increasing their vulnerability to financial loss in the event of a flood.

Recent floods in Texas, New Mexico, and North Carolina highlight the growing threat of flooding, driven by climate change, which leads to more intense and frequent heavy rainfall.

Homeowners, renters, and businesses can purchase flood insurance through FEMA's NFIP, which offers coverage up to $250,000 for homes and $500,000 for non-residential properties, though this may not be enough given increasing flood risks.

Despite widespread flooding, only about 6% of U.S. households have flood insurance, leaving a significant coverage gap, especially since most homeowners remain uninsured against flood risks.

FEMA's flood risk assessments show that even a 1% chance of flooding is considered high risk, translating to a 1-in-4 chance over a 30-year mortgage period.

Most standard homeowners insurance policies do not cover flood damage, leaving many homeowners unprotected, particularly after federally declared disasters where FEMA aid is often insufficient.