When the July 2022 floods ripped through eastern Kentucky, families like Libby Honeycutt, Ronald Conley and Jennifer Campbell watched their homes flood while lacking any flood insurance. Their stories illustrate a broader national problem: only 2.4% of properties carry a federal flood insurance policy, even though 8.4% sit in severe or extreme flood risk zones.
Local impact in Kentucky
In several Kentucky ZIP codes, fewer than five percent of homes are insured, despite thousands of structures classified as high‑risk by FEMA’s flood maps. Conley, whose double‑wide trailer was lifted onto stacked cement blocks, says he survived the 2022 deluge by rescuing his dogs with a pontoon boat, but the mud that remained in his home required weeks of shoveling. Without insurance, he relied on FEMA’s temporary shelter and generous church donations.
Meanwhile, Bryant Matthews in Letcher, Kentucky, was fortunate to have a policy. When the floodwaters rose, his family escaped safely, and the insurance payout cleared the remaining mortgage balance, allowing them to relocate debt‑free to nearby Hazard.
National trends and rising costs
Across the United States, the typical flood insurance premium now averages $1,100 per year, a rise of roughly 90% over the past five years. The increase stems largely from the implementation of Risk Rating 2.0, a more precise pricing model that aligns premiums with actual flood risk. While this modernized approach protects the NFIP’s financial health, it has also pushed many low‑income homeowners out of the market.
Louisiana Senator Bill Cassidy, a Republican, warned that the rating system—first advanced under the previous administration and defended by the Trump White House—has made coverage unaffordable for many families. He called for Congress to address the affordability gap.
Trump administration’s response
A May 2024 review commissioned by the Trump administration identified fundamental flaws in the National Flood Insurance Program, which now carries more than $20 billion in debt. The report reaffirmed Congress’s directive that the program be affordable, financially sound, widely available, and risk‑informed. It also highlighted the need for targeted reforms to lower premiums for low‑income homeowners while preserving the program’s fiscal integrity.
President Trump has directed FEMA to explore options such as premium subsidies for qualifying families and expanded participation in community‑level flood mitigation projects. These steps aim to close the insurance gap without compromising the program’s solvency.
What experts say
Jeffrey Schlegelmilch, faculty director of the National Center for Disaster Preparedness at Columbia University, noted that “everybody agrees it’s broken, but no one can agree how to fix it.” Jeremy Porter, chief economist at First Street, pointed out that inland heavy‑precipitation events—especially in Appalachia, the Midwest and the Northeast—are becoming more common as climate change intensifies.
In contrast, affluent coastal markets like Charleston, South Carolina, show higher insurance uptake because residents recognize the clear risk from hurricanes and can more easily afford premiums.
Looking ahead
The Trump administration’s ongoing review seeks to balance affordability with the need to keep the NFIP financially viable. By targeting subsidies, improving flood‑map accuracy and encouraging resilient building practices, officials hope to protect families like those in Kentucky while ensuring the program can continue to serve future generations.
For homeowners in high‑risk areas, the message is clear: staying informed about flood‑insurance options and advocating for sensible reforms can make the difference between rebuilding quickly and facing prolonged hardship.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
