Neptune Flood Research Group Releases Analysis of Flood Risk and Insurance Challenges in Kentucky, Tennessee & West Virginia
Largest private flood insurer in the U.S. shows increasing flood risk for properties as already low coverage declines further
ST. PETERSBURG, Fla., April 9, 2025 /PRNewswire/ -- Neptune Flood has released itsanalysis of the increasing flood risk across Kentucky, Tennessee, and West Virginia after catastrophic flooding in early 2025, fueled by increased rainfall, mountainous terrain, and aging infrastructure. Despite this rising hazard, due to price increases under the National Flood Insurance Program's (NFIP) Risk Rating 2.0, flood insurance participation is declining rapidly from a very low base, leaving the region financially exposed.
The report found here, analyzes the protection gap and highlights the opportunity for private market solutions.
Key data points include:
- Recent significant flooding events:
- 2025 Flooding: 21 deaths, 1,100+ NFIP claims
- 2022 Eastern Kentucky flood: 44 deaths, ~9,000 properties damaged
- 2016 West Virginia flood: 23 deaths, $1.1B+ in property damages
- 2010 Nashville flood: 21 deaths, $2B+ in property damages
- Flood exposure is significantly underestimated:
- FEMA maps identify ~365,000 buildings in high-risk flood zones across the three states
- First Street Foundation estimates ~950,000 properties face substantial flood risk, 2.5x higher
- Insurance coverage is critically low and declining:
- Fewer than 1% of homes have flood insurance across all three states
- In the 2022 Kentucky floods, 95% of damaged homes were uninsured
- From 2021-2024, NFIP policies across the three states fell by 17%
- In the last 20 years, insured flood losses exceed $600M, with far greater uninsured losses
- Premium increases under Risk Rating 2.0 are straining affordability:
- Dozens of counties across the region are facing premium increases of 200% or more
- Many Appalachian counties face premiums equal to 6–9% of household income
"Across the United States, millions of homes face rising flood risk, yet too many remain uninsured due to affordability challenges and outdated flood maps," said Trevor Burgess, CEO of Neptune Flood. "Nowhere is this crisis more evident than in Appalachia, where flood exposure is climbing, insurance participation is falling, and federal solutions are faltering. The private flood insurance market is here to help close the protection gap."
Click here to view the complete analysis.
About Neptune Flood
As the largest provider of private flood insurance in the United States, Neptune Flood continues to expand rapidly, offering a competitive alternative to the NFIP. Today, Neptune provides nearly $100 billion in coverage across over 225,000 residential and commercial properties, demonstrating both scale and stability within the flood insurance marketplace.
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SOURCE Neptune Flood