Flood Insurance Gap Leaves High-Risk Homes Exposed

Flood insurance is missing from most homes that face the greatest danger. An analysis found 4.5 million federal policies covering 2.4% of properties nationwide, while 8.4% are considered at severe or extreme risk. The number of policies has fallen by roughly 500,000 over five years as prices rose.

Eastern Kentucky shows the problem clearly. Some ZIP codes have coverage on no more than 5% of properties, despite hundreds or thousands of buildings facing extreme flood danger. In the area hit by the 2022 flooding, only 2.1% of properties had insurance, while about 47% faced severe or extreme risk. FEMA maps placed just 18% of damaged buildings inside high-risk zones, leaving many owners without required coverage.

The National Flood Insurance Program began in 1968 and covers homeowners, renters and businesses. Homeowners can generally insure up to $250,000 for a structure and $100,000 for belongings. Coverage helped one Kentucky family pay off its remaining mortgage after the 2022 flood. Others, including residents whose repairs were delayed by another flood in 2025, relied on temporary housing, donations and community help. Proposals to make the program more affordable have stalled.