99% of U.S. counties have flooded over the last 30 years — yet only 4% of American homeowners have flood insurance

Tom and Carrie Bashaw spent years building their dream home. The couple, both approaching 80, started construction in Wailuku, Maui, in 2020. Their house sat 75 feet from a small stream and 45 feet above it — close enough to enjoy but far enough to remain safe. Or so they thought. However, on one Saturday morning in March 2026, a powerful storm turned the quiet stream into a raging river. Floodwaters eroded the earth beneath the home's foundation, and the back half of the structure collapsed into the swirling waters. Then, high winds lifted what remained of the home and sent it crashing into the water below. The Bashaws weren't in a flood zone, so they didn't carry flood insurance. Now they are left sleeping on an air mattress in a storage unit on their property. "Mother Nature wins, and she wants you; she takes you," Tom Bashaw told ABC News (1). "She didn't take us. She just took the house. We're grateful for that. We have each other." "We've got each other. We got the cats, and we got the best neighbors anywhere. So, we're good." Carrie added. Carrie's daughter created a GoFundMe to help the couple replace belongings and potentially rebuild (2). As the risk of flooding rises in the U.S., stories like the Bashaws are becoming more common. According to the Federal Emergency Management Agency (FEMA), just 4% of homeowners nationwide carry flood insurance (3) — but 99% of U.S. counties have been impacted by flooding since 1996. In 2025, deadly floods swept across the United States at what the Insurance Information Institute described as an "unprecedented pace," with communities from Central Texas to California, North Carolina, and New York City experiencing widespread devastation (4). In some of the hardest-hit communities, fewer than 1% of households carried flood insurance, leaving families reliant on federal disaster assistance or personal savings to rebuild. "There's this misapprehension that if I'm not in a flood zone, then I shouldn't have to get flood insurance," said Anderson Baker, a retired insurance executive in Louisiana (5). "But everybody's in a flood zone. People at the top of a mountain are in a flood zone. They're just in a good flood zone." A 2023 survey by Munich Re and the Insurance Information Institute found that 64% of homeowners believed their homes were not at risk of flooding (6). And some who do carry coverage drop it once their mortgage is paid off—leaving them at risk. That assumption of safety is becoming increasingly dangerous. Federal disaster aid, when available at all, typically covers only a fraction of actual costs. Most standard homeowners' insurance policies do not cover flooding. That leaves a massive gap between what people lose and what they can recover. Read More: 5 essential money moves to make once you’ve saved $50,000 The Bashaws' experience raises an urgent question for homeowners everywhere: How do you know whether you need flood insurance, and how do you get it if you do? Here is how to assess your risk and make smarter coverage decisions. - Start by knowing your flood risk. FEMA's flood risk map tool at floodsmart.gov lets you enter your zip code and see your property's assessed flood risk. Even if you don't live near a river or coastline, you may be more exposed than you think. - If flood insurance is required, get it — and keep it. Some mortgage lenders require borrowers in high-risk areas to carry flood insurance. But experts caution against dropping that coverage once the mortgage is paid off. Your risk doesn't disappear when your loan does, and older homeowners, often with fixed incomes, are usually less able to absorb losses without coverage. - Understand your options. Most people get flood insurance through FEMA's National Flood Insurance Program, which is open to homeowners, renters, and businesses in approximately 22,600 participating communities. The NFIP offers up to $250,000 in coverage for a home's structure, with additional policies available to cover personal belongings. But the private market is growing, and getting quotes from both federal and private insurers can help you find the best rate. - Budget for flood insurance as part of your housing costs. Brian O'Connell, an analyst at insuranceQuotes, estimates flood insurance is likely to run between 30% and 75% of what someone already pays for homeowners' insurance (7). That's a meaningful added cost, but so is losing your home. Budgeting for coverage as part of your housing costs can help ensure you can maintain coverage in the long-term. If you're uninsured and flooding affects your area, you still have options. FEMA disaster relief may offer some coverage, but only if it's declared a national disaster. Community fundraising, like the Bashaws GoFundMe, which has raised nearly $100,000, may provide meaningful help. However, insurance remains the best option for protecting your home. For Carrie and Tom Bashaw, rebuilding at nearly 80 is a daunting prospect. Their house is gone, but they are facing it with grace. "There's nothing else we can do," Carrie Bashaw said. "This is all we've got, and it's gone, and we're survivors, and we'll just start again." Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now. We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines. ABC News (1); GoFundMe (2); FEMA (3); Insurance Information Institute (4, 6); NPR (5, 7) This article provides information only and should not be construed as advice. 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