California Faces Flood Insurance Crisis Amid Devastating Storms

Despite billions in damages from recent storms, less than 2% of California homes are insured against floods, exacerbating an ongoing insurance and housing market crisis.

Despite recent devastating storms in California, less than 2% of homes are insured against floods, leaving many to face the financial burden of rebuilding.
Insurance costs in California are soaring, with some insurers leaving the market due to the increased risk of climate disasters, making it harder to find affordable coverage.
The National Flood Insurance Program (NFIP) reports only a slight increase in policy enrollments after last winter's atmospheric rivers, indicating a lack of urgency among Californians to insure against floods.
Experts suggest the lack of flood insurance uptake is due to outdated FEMA maps, high policy costs, and a general underestimation of flood risks compared to other natural disasters like wildfires.
The insurance crisis is exacerbating the housing market's challenges, making it difficult for homeowners to sell their properties and for buyers to secure mortgages.