Why Washington’s Flood Disaster Proves NFIP Needs a New Approach

SALT LAKE CITY, Jan. 8, 2026 /PRNewswire/ — Historic flooding across Washington has exposed a critical flaw in the National Flood Insurance Program (NFIP): flood insurance uptake is not driven by risk awareness. All too often, the majority of flood insurance policies are for homes in a Special Flood Hazard Area (SFHA) and required by all federally regulated lenders. Even if your home is not located in an SFHA, a lender may require flood insurance.

While FEMA’s Risk Rating 2.0 evaluates flood exposure at the individual-property level, the mandatory insurance purchase rules remain tied to decades-old flood zone maps. This binary mandate system left thousands uninsured as record river crests inundated communities across both “high-risk” and officially “low-risk” areas.

Washington’s Flooding Highlights Misaligned Systems
Communities from West Richland to the Skagit Valley saw severe damage as rivers overtopped levees and reached levels not recorded in decades. Many of these areas were mapped as X Zones, where flood insurance is not required under current Mandatory Purchase Requirements.

The result: a structural mismatch between a modern, risk-based pricing model and a mandate system that only applies inside SFHAs. This misalignment – not lack of awareness – explains why so many families and businesses were uninsured.

Coverage Gaps Are a Direct Consequence of Outdated Mandates
Federal research confirms that flood insurance participation outside SFHAs is substantially lower because there is no requirement. Washington’s uninsured losses were not inevitable – they were the predictable outcome of regulatory lag. When mandates ignore property-specific risk, communities remain financially vulnerable.

Where It Rains, It Can Flood
Flooding isn’t limited to coasts or rivers. Any place with rain or snowmelt faces risk from heavy downpours overwhelming drainage, poor soil absorption, or local infrastructure, affecting even low-lying areas, small creeks, and properties far from major water bodies.

Nearly one-third of NFIP flood insurance claims occur outside high flood risk areas. No matter where you live, some risk of flooding exists. Floods don’t follow city limits or property lines so it’s important to have the coverage you need – whether it’s with an NFIP or a private flood insurance policy.

Industry Leaders Call for Action
“This disaster makes one thing clear: yesterday’s mandate structure cannot protect today’s communities,” said Marissa Skinner, managing director of Poulton Associates and administrator of the Natural Catastrophe Insurance Program at CATcoverage.com. “Risk Rating 2.0 provides a more accurate measurement of risk, but the rules that drive coverage decisions have not caught up.”

Closing the Gap Requires Action
Addressing this imbalance means more than awareness – it requires proactive steps to align mandates with actual risk. Certain X Zones with demonstrated flood exposure should be re-evaluated and, where appropriate, re-zoned to require coverage. While adding a mandate introduces a financial obligation for property owners, the cost of low-risk coverage is typically far less than the devastating financial impact of an uninsured flood loss. Modernizing these requirements would help communities avoid catastrophic gaps and ensure resilience against future events.

The Path Forward
Recovery efforts in Washington underscore the need for alignment between NFIP’s mandate framework and FEMA’s modernized risk assessment model. Updating mortgage requirements to reflect individualized risk – not outdated zone maps – would close coverage gaps and reduce uninsured losses in future events.

Insurance agents and licensed professionals seeking alternatives to the complexities of the NFIP can sign up to offer NCIP private flood insurance through CATcoverage.com.

About Wright National Flood Insurance Services dba Poulton Associates LLC
Wright Flood, a wholly owned subsidiary of Brown & Brown Inc., operating within Arrowhead Programs, is the largest flood insurance provider in the nation, offering federal, excess and private flood insurance with leading industry specialization, rated A (Excellent) by AM Best. Wright Flood takes pride in user-friendly technology, exceptional claims reputation and providing the service customers deserve. Wright Flood enjoys a strong reputation for excellence with FEMA and participates on industry councils and advisory boards in Washington, D.C., to strengthen the flood program that serves 4.7 million flood policyholders. Agents and consumers may visit us at wrightflood.com and wrightfloodadvice.org. To find an agent, call [phone].

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SOURCE Wright National Flood Insurance Services LLC