Uptake of Private Flood Remains Low

The uptake of private flood insurance in the United States continues to be low.
January 29, 2019

The uptake of private flood insurance in the United States continues to be low due to such factors as lack of risk models, low consumer demand, high private premiums, and the availability of relatively inexpensive government-sponsored insurance. During Hurricanes Harvey and Sandy, less than 20 percent of the houses that were flooded had flood insurance, highlighting the protection gap for the flood peril, says Risk Management Solutions’ (RMS’) Robert Muir-Wood.

The National Association of Insurance Commissioners (NAIC) has found that half of U.S. flood losses occur outside the designated high-risk areas, and a Lloyd’s of London report found only 1 percent of properties outside of the defined flood zones have flood insurance.


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