Missouri homeowners face risks as nearly 200 communities opt out of federal flood insurance

Nearly 200 communities in Missouri have opted out of the National Flood Insurance Program (NFIP), leaving homeowners without access to federally backed flood insurance. This decision raises concerns about protection for residents in a state prone to severe flooding.

The Great Flood of 1993, which affected Missouri and other parts of the Midwest, remains one of the most costly floods in U.S. history, causing over $15 billion in damages and affecting thousands of homes. Karen McHugh, Missouri NFIP coordinator, noted that recent flash floods like those in St. Louis during July and August 2022 are becoming more common.

“Nothing compares to the Great Mississippi River Flood of 1993. However, what I see now are historic flash flooding events,” McHugh said. She emphasized the importance of flood insurance by stating, “Where it rains, it can flood — this is why we encourage everyone to have a flood insurance policy on their real estate and contents.”

Missouri has 692 communities enrolled in the NFIP, but also has 190 non-participating communities with identified hazard areas. The Missouri State Emergency Management Agency (SEMA) reaches out annually to these non-participating communities.

McHugh explained that some communities choose not to participate due to reasons such as being mapped by FEMA as a No Special Flood Hazard Area or lacking resources to join. "My gut feeling about why some at-risk communities opt out of the NFIP is that they do not want to have to regulate new development," she added.

Homeowners in these areas cannot purchase federally backed flood insurance and may face difficulties obtaining private coverage. They are also ineligible for federal disaster relief if their community does not participate within a year after a flood hazard identification.

To join the NFIP, communities must complete an application process including adopting necessary ordinances and cooperating with FEMA guidelines.

Homeowners outside high-risk zones still account for about 40% of all NFIP claims, highlighting the widespread risk across different areas.