In this article, we will take a look at 25 US states with the biggest risk of flooding. If you want to skip our detailed analysis of the flood insurance industry in the United States, you can directly check out 5 US States With the Biggest Risk of Flooding.
Flooding in the US - An Overview
According to the 2023 Billion-Dollar Disaster Report by the NOAA National Centers for Environmental Information (NCEI), 2023 was a historic year for costly disasters in the United States. The year passed the previous annual record of 22 climate disasters above a billion dollars, set by 2020. Throughout 2023, the US saw a total of 28 weather and climate disasters with a cost of $1 billion or more, four of which were flooding events. When put in historical context, since 1980, the US has seen 44 flooding events with losses exceeding $1 billion. In total, inland flooding caused a damage of $196.6 billion to the US economy in 2023. Flooding was the third most frequent type of extreme weather event, totaling 44 occurrences throughout the year.
Some of the worst-hit states included Florida and New York, which are also some of the most dangerous US states for national disasters. On August 19, 2024, NBC News reported that Northeastern United States, including parts of Connecticut and Suffolk County in New York, has once again been engulfed by flash floods. These refer to sudden flooding events, usually caused by instances of heavy rain. Suffolk County declared a flash flood emergency on August 18th, which lasted until the 19th. Two deaths have been reported in Connecticut so far, along with hundreds of evacuations, which led the governor to declare a state of emergency on the 19th. Executive Ed Romaine from Suffolk County has also declared a state of emergency after surveying flood damage, which includes more than 1,000 property damage reports till now.
With flooding being such a prominent issue for the US, the country’s flood insurance industry plays an indispensable role in providing disaster relief. The Federal Emergency Management Agency manages the National Flood Insurance Program (NFIP), which provides coverage through a network of over 50 insurance companies. As of August 31, 2023, NFIP has over 3.1 million active policies for single-family homes, with the median cost of insurance being $786. The cheapest state for flood insurance is Alaska, with its current median cost being $412, whereas the most expensive is Connecticut, where the median lies at $1,174.
The NFIP provides a maximum building coverage of $250,000 and personal property coverage of up to $100,000. It is also important to note that NFIP is not a valued policy. In case of total destruction of the insured item, a valued policy pays out the entire insurance amount, even if the cost of replacing the item is lesser. On the other hand, the NFIP only pays the replacement cost. It is also not a guaranteed replacement cost policy. This means that if the damages to an insured home exceed the policy limit, the NFIP will not pay the amount above the limit. The policy also has certain limitations regarding portions of a home below the lowest elevated floor, including basements and crawlspaces. For example, the policy does not cover most personal property in such spaces, nor drywall and floor coverings like tiles.
Alternatives to NFIP
Its cost and coverage limitations are why, sometimes, the NFIP alone might not provide sufficient coverage to satisfy consumers’ safety needs. According to FEMA, one in five flood insurance claims emerge from moderate-to-low-risk areas, which is why residents can also seek excess coverage through NFIP. The NFIP provides this option using private insurance companies, allowing individuals to receive coverage for a higher range of flood damages, including those that their NFIP policy alone might not cover. According to data from the Insurance Information Institute (III), net premiums by private insurance companies amounted to $803.1 million in 2023.
In the United States, Zurich Insurance Group (SWX:ZURN) is one of the top private flood insurance companies. Based in Switzerland, the company offers a multitude of insurance services in over 200 territories and countries, including homeowners’ insurance, flood insurance, and health insurance. According to III, Zurich Insurance Group (SWX:ZURN) had a market share of 12% in direct premiums written for flood insurance in 2023.
In addition to providing traditional insurance coverage, Zurich Insurance Group (SWX:ZURN) is also helping communities build resilience against flooding events under its Flood Resilience Alliance. The Alliance began in 2013 and has several work streams, including research, advocacy, community programs, and impact measurement. Examples of this work include building the capacity of community members to use information given out through early warning systems. Since 2013, the Alliance has impacted a total of 3.14 million people, spending a total of $1.26 billion in building community resilience against flooding.
In 2023, the company's UK wing joined Flood Re’s Build Back Better (BBB) scheme in another step towards future resilience against flooding. Under this partnership, the company announced that flood-prone customers will receive ￡10,000 to invest in flood resilience measures. This amount will be in addition to the cost of repairing any damage caused by a flooding event.
On August 8, 2024, Zurich Insurance Group (SWX:ZURN) announced that during the first half of 2024, the company’s group business operating profit had seen an increase of 7%, reaching a record value of $4 billion. One of the key drivers behind the company’s growth was its property & casualty segment (P&C), which alone raked in a business operating profit of $2.2 billion. Insurance revenue from this segment saw an increase of 6% in US dollars. Flood insurance is also considered a part of the P&C segment, as it is a type of property insurance. Overall, Zurich’s performance in the first half of the year shows why it is one of the best flood insurance companies to consider right now.
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Now that we’ve examined a snapshot of the US flood insurance industry, let’s take a look at the 25 US states with the biggest risk of flooding right now, as many of them are heavily reliant on this market.
25 US States With the Biggest Risk of Flooding
25 US States With the Biggest Risk of Flooding
Our Methodology
To compile this list of 25 US states with the highest risk of flooding, we consulted the National Risk Index by the Federal Emergency Management Agency (FEMA). We utilized the index's Expected Annual Loss (EAL) component, which measures the average annual monetary loss to population, buildings, and agriculture due to hazards. Both riverine and coastal flooding were taken into consideration to evaluate which state had the highest net impact of flooding. The states are ranked in ascending order of annual losses. The data is as of March 2023.
Note:For the purpose of this article, we have also included Puerto Rico in the ranking owing to its considerable flooding level.
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25 US States With the Biggest Risk of Flooding
25. Indiana
Average Annual Losses to Flooding: $80,001,012
Indiana ranks 25th on our list of US states with the highest risk of flooding, with an average annual loss of around $80 million. Most of the flooding in the state is riverine, with only three counties being exposed to coastal flooding: Lake, LaPorte, and Porter. One of the biggest floods in Indiana’s history occurred in June 2008, which impacted around 25,000 people and 9% of the total farmland.
24. West Virginia
Average Annual Losses to Flooding: $80,689,653
All flooding events in West Virginia are cases of riverine flooding, with the most affected counties being Kanawha, McDowell, Ohio, and Logan. In recent years, one of the biggest floods in the state occurred in 2016, which resulted in 23 fatalities. Six of these were in Kanawha County. As a result of the flooding, 44 out of 55 counties had declared a state of emergency. The floods caused a total damage of around $1.2 billion (CPI-adjusted).
23. Nevada
Average Annual Losses to Flooding: $81,730,309
With an overall damage of $81 million due to riverine flooding alone, Nevada ranks 23rd on our list of US states with the highest risk of flooding events. According to the National Weather Service, Nevada had six significant flooding events during the 1900s. In 2023, flooding left thousands of people stranded at the Burning Man Festival in Nevada, where at least one death was reported.
22. Alabama
Average Annual Losses to Flooding: $88,201,885
In Alabama, significant cases of coastal flooding are witnessed in the Baldwin and Mobile Counties, with several other counties being exposed to riverine flooding. Jefferson, Houston, and Morgan are some of the counties with the highest expected annual losses due to riverine flooding. The state ranks 22nd on our list.
21. Michigan
Average Annual Losses to Flooding: $90,150,332
On average, Michigan faces more than $90 million in annual flood losses, and several of its counties, including Wayne, Menominee, Macomb, and Huron, are exposed to coastal flooding. Flood warnings were issued for several areas in Michigan in July 2024 after heavy rain; however, heavy flooding did not eventually occur.
20. Arkansas
Average Annual Losses to Flooding: $96,201,949
Each year, the state of Arkansas expects to lose $96 million to riverine flooding, making it the 20th US state at the highest risk of flooding. The state saw flash flooding in July 2024 after a significant amount of rainfall fell in just a few hours. A flash flood emergency was issued, leading to the evacuation of around 30 houses and one nursing home.
19. Colorado
Average Annual Losses to Flooding: $98,102,911
Colorado experiences an average annual loss of $98 million due to flooding, with Larimer, Boulder, and Weld Counties being the most economically affected. Larimer County has an expected average annual loss of $25 million, which is more than a quarter of the total amount. The state ranks 19th on our list.
18. Mississippi
Average Annual Losses to Flooding: $101,891,639
Due to the active weather patterns that began in May of 2024, the summer brought flooding to the communities around the Mississippi River. In addition to a general loss of tourism, several 4th of July events in the area suffered as well. Mississippi ranks as the 18th most economically affected US state by flooding.
17. Kentucky
Average Annual Losses to Flooding: $105,629,901
Across the state of Kentucky, the highest flood damage costs are expected to occur in the counties of Jefferson, Floyd, and Pike. The most recent example of destructive floods in Kentucky occurred in July of 2022, which resulted in 39 deaths and over 600 helicopter rescues.
16. Oregon
Average Annual Losses to Flooding: $110,780,634
Oregon is another US state that experiences damage due to both riverine and coastal flooding. The highest economic impact of coastal flooding is expected in the counties of Clatsop, Coos, and Tillamook, with the latter two also being at a high risk for riverine flooding. The state ranks 16th on our list of US states with the highest flooding risk, with an average annual loss of $110 million.
15. Illinois
Average Annual Losses to Flooding: $115,195,930
Illinois is also one of the US states that saw flooding in July 2024 after heavy storms and dam failures. Two failures occurred in the Nashville Reservoir Dam, leading to the evacuation of hundreds of people. The dam, located in Washington County, was overtopped due to excessive rainfall.
14. Missouri
Average Annual Losses to Flooding: $122,283,045
Missouri ranks as the 14th US state at the highest risk of flooding, with an expected average annual loss of more than $122 million. The counties that receive the most economic damage from flooding include St. Louis, Howell, McDonald, and Taney.
13. Ohio
Average Annual Losses to Flooding: $133,877,743
In Ohio, the counties of Franklin, Summit, and Trumbull see the highest average losses due to annual flooding. In August 2024, rainfall and storms led to flooding and power outages across Northeast Ohio, with flood warnings being issued for Cleveland and surrounding areas.
12. Iowa
Average Annual Losses to Flooding: $135,696,866
In June 2024, the Governor of Iowa declared a flood-related disaster in 21 counties of the state. Video footage showed entire streets submerged in water, and many trapped residents had to be rescued by boat. Iowa ranks 12th on our list of US states with the most significant risk of flooding.
11. North Carolina
Average Annual Losses to Flooding: $141,008,820
On average, North Carolina loses over $141 million to flooding annually. The state has seen two devastating floods in the past decades, after Hurricane Florence in 2018 and Hurricane Matthew in 2016. Most recently, a coastal flood advisory was issued for Inland Brunswick on August 21, 2024.
10. Virginia
Average Annual Losses to Flooding: $144,981,713
Virginia ranks tenth on our list of US states with the biggest risk of flooding. The expected annual loss to flooding is over $144 million for the county. The counties most at risk of economic damage from coastal flooding include Accomack, Hampton, and Northumberland. On the other hand, considerable damage from riverine flooding is expected in Norfolk, Tazewell, and Buchanan Counties.
9. Pennsylvania
Average Annual Losses to Flooding: $213,623,855
While most counties in Pennsylvania receive riverine flooding, FEMA categorizes the Delaware and Philadelphia Counties as having a ‘relatively moderate’ chance of historic losses due to flooding. The highest losses due to riverine flooding are seen in the counties of Dauphin, Luzerne, and Bucks.
8. Tennessee
Average Annual Losses to Flooding: $233,370,681
The state of Tennessee saw flooding occurrences in both May and July 2024. Flash floods also affected the Dollywood theme park in July, where guests and visitors had to rush out to evacuate as waters rose. Tennessee ranks eighth on our list of US states with the most flooding risk.
7. Puerto Rico
Average Annual Losses to Flooding: $239,540,187
On August 14, 2024, NBC News reported that due to the heavy rains brought by Hurricane Ernesto, around 730,000 people lost access to electricity. Thousands of people were also reported to be under flood threats.
6. Florida
Average Annual Losses to Flooding: $298,275,449
With an expected annual loss of more than $298 million, Florida ranks sixth on our list of US states with the highest risk of flooding. Florida is also one of the states with a high risk of coastal flooding, with the average annual losses from this category alone reaching $36 million.
5. New York
Average Annual Losses to Flooding: $334,341,929
Each year, the state of New York expects to lose over $334 million in flood losses. In September 2023, in the aftermath of Tropical Storm Ophelia, New York City saw a major flooding event. The flash flooding even caused the Subway to be disrupted, with some lines being suspended entirely and many stations being closed.
4. California
Average Annual Losses to Flooding: $409,976,905
In the state of California, the highest economic damage due to flooding is expected in the counties of Kern, Ventura, San Bernardino, and Marin. Overall, California ranks fourth on our list of US states with the highest flood damage.
3. Louisiana
Average Annual Losses to Flooding: $759,040,777
On average, Louisiana expects an average loss of over $759 million due to flooding events. The counties at the highest risk of costly damage include East Baton Rouge, Lafayette, and St. Tammany. These are the same regions that were massively impacted in the Louisiana floods of August 2016.
2. New Jersey
Average Annual Losses to Flooding: $818,943,074
New Jersey is one of the states where most losses come from coastal flooding rather than riverine flooding. Out of its total flooding loss of $818 million, at least $634 million is expected to be from coastal flooding. Counties at the highest risk of this type of flooding are Bergen, Ocean, and Atlantic.
1. Texas
Average Annual Losses to Flooding: $1,965,480,712
Texas ranks as the first state in our list of US states with the highest risk of flooding. Most flooding in Texas is riverine, with the highest damage costs occurring in the counties of Harris, Galveston, and Brazoria. On the other hand, significant coastal flooding damages are also seen in some counties, such as Cameron, Aransas, Nueces, and Calhoun. According to data from the NOAA, Texas has seen nine different billion-dollar flooding events from 1980 to 2024, collectively costing the state between $10-20 billion.
