Homeowners insurance realities set in after recent floods
Destructive flooding in Washington state led many to discover that standard insurance policies don’t cover flood damage — an issue homeowners face nationwide.
Key points:
- After a series of storms dumped nearly 2 feet of rain in Washington state, many people have come to the sudden realization that their standard homeowners insurance policy doesn’t include flood coverage.
- Though many homeowners in western Washington live in high-risk flood zones, only about 45,000 homes statewide had flood insurance as of October.
- But the cost of flood insurance, which must be purchased separately, has climbed amid the rise in climate-related disasters — and more people across the country are choosing to go without coverage.
As homeowners in Washington state assess the damage caused by heavy rain over the past two weeks, many are making the unfortunate discovery that standard homeowners insurance policies don't include flood coverage.
Some areas hit with up to 18 inches of rain last week were battered by another storm on Dec. 16, and with more rain expected in the days ahead, President Donald Trump has approved an emergency declaration request from the state — but for many homeowners, dealing with water damage will still be costly.
A 'terribly sad' situation
Damage from wind and fallen trees is typically covered by homeowners insurance. But flood insurance must be purchased separately — either through a private carrier or through the National Flood Insurance Program (NFIP).
Many homeowners in western Washington live in high-risk flood zones, according to a Redfin report. In Skagit County, 28.6% of homes — nearly 23,000 — face a high flood risk, and nearly 42,000 homes fall into that category in King County, which encompasses the Seattle metro.
Even so, only about 45,000 homes in the state had flood insurance as of late October, a spokesperson for the state's Office of the Insurance Commissioner told the Washington State Standard.
After the recent heavy rain and flooding, it's been "terribly sad" to see many homeowners surprised to discover they don't have flood insurance, NW Insurance Council President Kenton Brine told KIRO Newsradio.
"It only takes an inch of water in your home to cause $25,000 to $30,000 worth of damage," Brine explained.
More homeowners dropping key flood plan
The destructive flooding in Washington is part of a larger uptick in both the severity and frequency of climate-related disasters across the country.
Homeowners insurance costs have been climbing as a result of these weather events, with the cost of a standard policy rising over 40% from 2019 to 2024, a LendingTree analysis found. Costs tend to rise the most in areas deemed to have higher risks of major climate-related events.
In terms of flood insurance, the NFIP is the nation's largest provider — but its authorization relies on congressional approval and can lapse, as it did during this fall's federal government shutdown. The NFIP's current authorization extension is slated to end in late January.
Meanwhile, the NFIP began readjusting rates in 2021 and 2022, charging more for those who live in areas determined to be at greater risk of flooding — and leading to a decline in policyholders.
Drops in new and existing policies differ by location and income level, according to a study published in the Journal of Catastrophe Risk and Resilience in November. Researchers found that the NFIP policy rate changes have resulted in a 11-39% decline in new policies and a 5-13% decrease in existing policies — and the drops were greater in ZIP codes with lower median household incomes.
Flooding brings complications for agents
From the immediate challenges that intense weather presents to potential homebuyers' long-term concerns about insurance coverage, flooding in Washington has complicated year-end closings for agents. Don Bleha, a Redfin agent in Snohomish County, said in Redfin's report that he's had a home closing pushed back and other showings delayed.
Given the sheer number of homes in flood zones, agents say reviewing flood maps should be standard procedure for buyers. Redfin noted in a Dec. 9 report that while many of its users tend to click into climate-risk data after major disasters, that bump in traffic is often short-lived.
"Buyers and sellers must do their due diligence," Bleha said. "Don't rely solely on seller disclosures or a seller saying, 'It hasn't flooded for me.' Ask neighbors, review flood maps, check insurance requirements, and find out whether the home has an elevation certificate. If the home is anywhere near a creek or river, assume you'll see high water at some point."