Flood Risk Is Changing and So Should Our Response
Josh Bloch
Head of Internal Consulting
December 3, 2025
Flooding is no longer a rare event confined to coastal areas or high-risk zones. It’s becoming more frequent, more severe and more unpredictable. Homes that once seemed safely removed from flood danger are now experiencing its impact firsthand.
At PURE, we’ve seen this shift play out across the country. While we could share countless examples, here are three that underscore the urgency of rethinking flood risk.
- In San Diego, California, an atmospheric river dropped four inches of rain in just a few hours and stormwater flooded one member’s home, filling their finished basement to the ceiling.
- In Ely, Minnesota, three inches of rain caused groundwater to flood another member’s basement, even though their sump pumps were working.
- In Dallas, Texas, a single clogged drain led to flooding that affected just one home—but caused significant damage.
Each of these homes was in a FEMA-designated low-risk flood zone. Unfortunately, none had flood insurance.
Flood risk at-a-glance
1 in 3
NFIP flood claims come from areas outside FEMA’s high-risk zones1
NFIP flood claims come from areas outside FEMA’s high-risk zones1
$250,000+
The potential cost of just one inch of water in a luxury home2
The potential cost of just one inch of water in a luxury home2
50 states
Every major urban area in the country has experienced flooding in the past 20 years3
Every major urban area in the country has experienced flooding in the past 20 years3
Reimagining the future of flood insurance
Imagine it’s 2030. Every homeowner has flood coverage. Private market options are thriving. Policyholders understand the risk—and the value of protection. Flood insurance is no longer debated; it’s simply expected. That’s the future PURE is building toward.
Our flood solutions are designed to eliminate the traditional barriers that have made flood insurance complicated and inconsistent. PURE’s offering is easy to quote, competitively priced, designed with higher limits and claims are managed by PURE adjusters without the need for NFIP or FEMA coordination.
While this is a major step forward, we know there are still obstacles preventing homeowners from investing in flood coverage.
What's holding homeowners back?
PURE recently surveyed over 1,000 high net worth consumers to understand why flood insurance take-up rates remain low. Three key barriers emerged.
The perception of "it won’t happen to me"
Despite rising losses and increasingly conclusive data, many homeowners still believe they’re not at risk. “I’m not in a flood zone” or “It’s never flooded here before” are common refrains. But flooding is the most common natural disaster in the U.S., and it affects every state.
Despite rising losses and increasingly conclusive data, many homeowners still believe they’re not at risk. “I’m not in a flood zone” or “It’s never flooded here before” are common refrains. But flooding is the most common natural disaster in the U.S., and it affects every state.
Lack of understanding
Half of survey respondents said they were unfamiliar with what flood insurance actually covers. Many brokers feel less confident discussing private flood options. Encouragingly, 60% of those without flood insurance said they’d consider it if they better understood their risk, if their agent recommended it or if the process were simpler.
Half of survey respondents said they were unfamiliar with what flood insurance actually covers. Many brokers feel less confident discussing private flood options. Encouragingly, 60% of those without flood insurance said they’d consider it if they better understood their risk, if their agent recommended it or if the process were simpler.
It's still optional
Even when the risk is clear and the coverage is understood, flood insurance competes with other financial priorities. Because it’s optional, it’s often deprioritized. But history shows us how norms can shift: homeowners insurance wasn’t standard in the 1950s—by the 1970s, it was. We’re at a similar inflection point with flood coverage.
Even when the risk is clear and the coverage is understood, flood insurance competes with other financial priorities. Because it’s optional, it’s often deprioritized. But history shows us how norms can shift: homeowners insurance wasn’t standard in the 1950s—by the 1970s, it was. We’re at a similar inflection point with flood coverage.
PURE's commitment
PURE’s mission goes beyond offering a product. We’re working to reshape how people think about flood risk—and to make it easier for our members and brokers to take action.
Together, we can change the narrative around perception, education and prioritization. This is how we move flood insurance from an afterthought to an essential—and help more families protect what matters most.
1. https://www.floodsmart.gov/flood-zones-and-maps/what-is-my-flood-risk
2. https://agents.floodsmart.gov/resource-library/just-1-inch-floodwater-flyer , https://www.fema.gov/flood-insurance/work-with-nfip/risk-rating/single-family-home
3. https://www.floodsmart.gov/flood-zones-and-maps/what-is-my-flood-risk
4. This material is descriptive only. The precise coverage offered is subject to the terms and conditions of the policies issued.
