From the severe flooding in Kentucky to thunderstorms in the Plains and Midwest, water-related catastrophes seem to dominate headlines across the US.
In 2025, flooding cost billions of dollars in insured losses and yet according to FEMA less than four percent of homes have flood coverage in place. What’s more, for longer-term context, Moody’s analysis found that from 2000 to 2024 insured US flood losses totalled $319 billion while uninsured losses topped $1.58 trillion - with uninsured losses estimated to rise a further 25% by 2050.
But this increased frequency and severity of bad weather does not necessarily mean property owners have to -buy a new flood insurance policy. Instead, the easier and more effective option could be to add a flood endorsement to an already existing policy.
Speaking to Insurance Business (IB), Seth Piechowski, senior market development manager at Munich Re US, explained that for those living in the inland flood risk space, this option really could be a win-win.
“Forty percent of NFIP flood insurance claims come from outside special flood hazard areas . So it’s really important that those folks have proper coverage too. That being said, standalone flood policies can be incredibly expensive with limits that are close to the total insured value of the building. For most flood events, you are not going to see a total loss, and so as a result flood endorsements provide supplemental coverage that typically is close to, if not at, replacement cost for a lot of these claims that occur.”
In addition to the more robust coverage, Piechowski told IB that the net costs for an endorsement are lower, typically sitting at around $40 to $50 on an annual basis. With a standalone policy, however, that figure could be in the hundreds or even thousands of dollars. What is more, these endorsement options do not just level up with standalone policies - in many cases, they actually surpass them.
“From an agent standpoint, you're eliminating an additional policy that has to be bound and maintained, as well as having to re-enter any policyholder information,” added Piechowski. “And from a policyholder standpoint the cost piece is a big benefit.”
Additionally, this endorsement is simply an add-on to a typical property owner's existing policy. This means there is no back-and-forth between different options, different packages, or plans from multiple parties. Instead, an individual simply speaks to their specific agent and requests the endorsement , meaning the client gets the right coverage at the right price without the hassle.
Convenience is the real draw, along with reduced complexity that comes with opting for an endorsement. As Piechowski explained, the upfront benefits for the agent and the policyholder are already apparent - but the benefits are also there on the backend too.
“On the off-chance that a loss does occur, you create an environment where you're only working with one carrier,” he told IB. “With that carrier, not only are you able to file one claim and work with them on the flood component, you are also able to work with them for any other type of peril that may have caused additional damage or created an exposure issue.”
It is a scenario that Piechowski sees pretty regularly at Munich Re US, especially regarding basement damages and water backup concerns.
“When something like that happens, there is a real need to understand what coverage falls where and how things will play out. With endorsements, you are likely working with one claims adjuster rather than multiple - meaning they are able to simplify the potential back and forth that you see when working separately with flood adjusters and claim inspectors.”
Historically, customers who are risk adverse typically have the desire to make sure they are covered when the worst happens. As a result, they generally purchase appropriate, affordable optional coverages to ensure protection.
“By adding an endorsement instead of self-insuring, your insureds have a [small] premium to cover tens of thousands of dollars should a flood event occur compared to paying it out on their own - and taking a significant hit to their wallet.”
This benefit, as Piechowski told IB, is seen in two ways. The first is a single premium - the base premium with an optional endorsement versus standalone coverages. The second is having that assurance and coverage when an event does occur.
By partnering with Munich Re US, carriers can offer the Personal Lines Inland Flood Coverage Endorsement, a white-label, customized flood solution, to property owners outside of the special flood hazard area (SFHA).
This article was created in partnership with Munich Re US
