Jessica Edmondson Director of Media Outreach | Insurify
Catastrophic flooding in North Carolina, South Carolina, and Tennessee has raised concerns about the availability of federal flood insurance. According to the Federal Emergency Management Agency (FEMA), 2,279 communities across the United States do not participate in the National Flood Insurance Program (NFIP), leaving property owners without access to federally backed flood insurance.
Many non-participating communities are rural with small populations or believe they have minimal flood risk. Chad Berginnis, executive director of the Association of State Floodplain Managers (ASFPM), explained that these areas often lack accurate flood maps due to FEMA's limited mapping budget prioritizing higher-risk areas. "We have 3.5 million miles of streams, rivers, and coastlines in the country. We’ve mapped 1.2 million miles of them," Berginnis said.
The NFIP was established by Congress in 1968 and is managed by FEMA. It allows homeowners, businesses, and renters to purchase flood coverage if their community agrees to regulate development in floodplains according to NFIP standards. Currently, approximately 5 million policies are active in over 22,600 communities nationwide.
Despite being a common natural disaster causing significant damage, many areas outside high-risk zones generate nearly one-third of all NFIP claims. Recent hurricanes like Helene have highlighted the risks faced by non-participating communities such as Mills River in North Carolina. With a population exceeding 7,300, Mills River does not participate in the NFIP and lacks widespread flood insurance coverage.
Berginnis noted that some communities may forgo participation due to perceived costs or a lack of demand from residents for flood insurance. He emphasized that joining the NFIP is straightforward: "Typically, the community passes a resolution of intent to join the program."
Consequences for non-participating communities include difficulty obtaining private flood insurance and restrictions on using federally backed mortgages for properties in Special Flood Hazard Areas. Additionally, federal financial assistance for rebuilding after disasters is unavailable.
North Carolina serves as an example of unprotected flood risk consequences with several municipalities opting out of NFIP participation despite recent damages from Hurricane Helene. This storm caused significant loss and devastation across multiple states.
Berginnis urged property owners to explore private flood insurance options where NFIP coverage isn't available and encouraged community leaders to consider joining the program. He warned against complacency: "Do not delude yourself to think it can’t happen again... It will."
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