Best’s Commentary: Florida Flooding Losses Manageable but Expose Low Take-up Rates for Private Coverage

OLDWICK, N.J.--(BUSINESS WIRE)--Given the disproportionate number of homes with federal or private flood insurance in Florida, a significant number of them may not be covered against or underinsured against flood-related losses following several rounds of torrential storms across the state, according to an AM Best commentary.

The Best’s Commentary, “Florida Flooding Losses Manageable but Expose Low Take-up Rates for Private Coverage,” notes that Florida is the largest flood insurance market in the United States, with more than 1.7 million flood insurance policies in force, according to the National Flood Insurance Program (NFIP). The state also has the largest take-up in private flood coverage, based on direct premium, and these NFIP and private flood figures reflect Florida’s frequent exposure to flood-causing events amid the buildup of coastal properties. At the same time, just 16% of Florida’s households are covered with flood insurance, illustrating the low overall take-up of coverage against flooding.

“Not only do a significant number of homes in Florida remain uninsured against floods, many homes with insurance are also underinsured, since the NFIP is limited to $250,000 per residence and the median home value in Florida is approximately $400,000,” said Christopher Graham, senior industry research analyst, AM Best.

Despite parts of Florida seeing 20 inches of rain, improvements in underwriting and more-adequate recent pricing should make flood loss totals more manageable.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=370312.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.