Many homeowners underestimate their flood risk, leaving millions uninsured or underinsured in the face of a rising tide of flood events.
A 2025 study from the Federal Reserve Bank of Philadelphia found 70% of annual flood losses remain uninsured, amounting to $17.1 billion in financial exposure each year.
A new report from Neptune Flood, “Bridging the Flood Insurance Gap: Addressing the Underinsurance Crisis in the United States,” found that the flood insurance gap stems from a wide variety of factors, from consumer misconceptions to the limitations of the National Flood Insurance Program (NFIP).
Examples of