Expert warns of the 'largest insurance gap in the US' that many homeowners don't realize they have: 'We keep telling people'

Expert warns of the 'largest insurance gap in the US' that many homeowners don't realize they have: 'We keep telling people'

Sam Westmoreland

Mon, December 1, 2025 at 10:00 PM UTC

2 min read

An insurance expert is sounding the alarm as more and more Americans find themselves lacking a crucial form of protection for their homes.

What's happening?

According to Yale Climate Connections, Loretta Worters of the Insurance Information Institute said that there is a massive hole in many Americans' home insurance policies: protection against flooding.

"Floods are the most common costly natural disasters in the United States," Worters said. "Yet flood insurance remains one of the most underutilized forms of protection. We keep telling people, flooding can happen anywhere, even on a mountaintop."

In fact, according to the Federal Emergency Management Agency, 40% of National Flood Insurance Program claims come from outside of designated high-risk flood areas.

Why is flood insurance important?

The problem with not having flood insurance is a classic one: You don't think you need it until you really do.

If your home is damaged by flooding and you don't have proper flood insurance, you don't get reimbursed for the damages, leaving you with a massive bill for repairs and cleanup that you'll have to front on your own.

Making matters worse, as the planet warms thanks in part to human-caused carbon pollution, weather patterns become more erratic and less predictable. This means storms become stronger, rain comes down harder, and flooding is more severe.

It's a problem being seen around the world. For example, in October, Mexico saw 300 towns cut off from the rest of the country due to unprecedented flooding.

Researchers have shown that millions of structures could be at risk of flooding in the coming years, meaning flood insurance is more important than ever.

What's being done about flood insurance?

People like Worters are trying to raise awareness of the dangers of flooding to make sure homeowners are protected.

"It is probably the largest insurance gap in the U.S., and we just want to educate people about the need to have that coverage," she said.

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