Flood Disasters Contribute to Home Insurance Crisis – and Cuts to FEMA & NFIP Will Make It Worse
FOR IMMEDIATE RELEASE
April 16, 2025
Contact: contact@insurancefairnessproject.com
Flood Disasters Contribute to Home Insurance Crisis – and Cuts to FEMA & NFIP Will Make It Worse
As extreme storms bring more flooding across the country, residents in states including Indiana, Kentucky, Tennessee, Missouri, Texas, and more are seeing gaps in private insurance.
Too often, many Americans find out too late that typical home insurance doesn’t include flood protection. FEMA comes in immediately after a flood to provide immediate recovery assistance and an option to join the National Flood Insurance Program (NFIP), a program administered by FEMA that covers over 4.7 million Americans.
However, FEMA’s authority to oversee the sale of flood insurance policies expired last year, with extensions attached to funding resolutions set to expire in September. Members of Congress from Louisiana and Mississippi, representing both parties, have introduced legislation to extend the NFIP.
“For many Louisianans, flood insurance is not just a policy—it’s a lifeline," said Rep. Julia Letlow (R-LA). "Given the frequent storms and flooding our state endures, I’m a strong advocate for renewing the National Flood Insurance Program and making sure it serves those who depend on it."
Meanwhile, more than 40 organizations, including Public Citizen, Consumer Federation of America, and Union of Concerned Scientists, sent a letter to Congress opposing cuts to FEMA and NFIP. The letter states:
“While NFIP has serious challenges that must be addressed, it is the main–and sometimes only–flood insurance option available to most homeowners in flood-prone areas. It needs a strong, well-sourced agency to administer and enforce the policies. Dismantling FEMA puts this program in serious limbo and creates uncertainty for families that need to protect their homes and assets from inevitable flooding.”
“The National Flood Insurance Program is the most immediate example of how important federal protections are to guard Americans from extreme weather and fill private insurance gaps,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “Polling shows that Americans want the government to do more to solve the home insurance crisis. Cuts to FEMA and dismantling NFIP move us in the wrong direction at the worst time.”
National Polling
The Insurance Fairness Project’s recent poll found that insurance is top of mind for American voters keenly aware of their vulnerability:
78% of voters are at least somewhat concerned about rising property insurance prices, with 40% saying they are “very concerned”;
66% are concerned about increasing extreme weather events;
74% have either been personally impacted by extreme weather or know someone else who has;
A majority of voters think the federal government and state governments are doing too little to protect consumers and hold insurance companies accountable.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
