Flood risk in the United States is no longer confined to coastlines. Private flood insurance gives businesses more accurate risk modeling, higher limits, and broader coverage than the National Flood Insurance Program can provide. In 2026, dangerous flood events have struck states across the country. Businesses relying on federal flood zone designations may carry far more exposure than those maps reflect. The July 2025 Central Texas floods produced an estimated $18 billion to $22 billion in total economic damage in an area few would have flagged as high-risk. Carson Post of ICW Specialty told Insurance Business that flood risk has grown more complex, and more widespread, than most commercial buyers recognize.
Flood risk is now a nationwide problem. Carson Post, national underwriting director, flood at ICW Specialty, spoke with Insurance Business about the shift. In 2026, Alaska, Missouri, New Jersey, and New York all experienced exceptionally high rainfall and dangerous flood events. Flash floods continued to hit Indiana and the Midwest. Post said: "Flood events are becoming more frequent and more widespread across the United States." He continued: "And at the same time, flood risk has become more complex, with both pluvial and fluvial flooding occurring more often. The severity of these events, along with the time required for communities and businesses to recover, has also risen." Increasing development in flood-exposed areas, urbanization, and hard-paved surfaces have compounded the exposure far beyond what most risk assessments capture.
FEMA flood maps are outdated. Many have not been updated in more than 15 years. Post noted that "these are issues that traditional flood zones don't always take into consideration." The maps do not account for deteriorating stormwater infrastructure, rising urbanization, or the hard-paved surfaces that increase water runoff. True flood exposure today goes well beyond what FEMA data captures. A property outside a designated high-hazard zone can carry significant flood risk. The 2025 Central Texas floods and 2024's Storm Helene in Asheville both produced devastating losses in areas widely considered low-risk. Those events make the gap between official flood zone designations and actual exposure impossible to ignore.
The biggest mistake is assuming that a location outside a FEMA high-hazard zone carries minimal flood risk. Post was direct: "The biggest mistake people make is assuming that if [their] business isn't in one of FEMA's high-hazard zones then [their] risk of flooding is minimal, and that [they], therefore don't need to purchase any flood coverage." Many businesses that do buy coverage also buy too little. Post told Insurance Business that public awareness rises after major events attract media attention, then fades. "If it's not in the news or on TV then it's 'out of sight, out of mind,'" he said. That attention gap is where underinsurance takes hold, and where the financial consequences of a flood event become most severe.
The July 2025 Central Texas floods showed that severe losses can occur where businesses would never expect them. According to figures from Cotality, Captives Insurance, and Texas Public Radio, the event produced an estimated $18 billion to $22 billion in total economic damage covering property, infrastructure, and business interruption. Residential property losses alone were modeled at roughly $1.1 billion. Roughly 3,000 businesses and thousands of homes were damaged or destroyed, particularly along the upper Guadalupe River basin in Kerr County. Post describes this as the central problem: traditional flood zones do not give an accurate picture of true flood risk. The Central Texas floods are an example of devastating losses occurring in areas no one would have thought of as exposed.
Private flood insurance offers higher limits, flexible deductible structures, and a single policy for multiple buildings. The NFIP requires a separate policy per building. Private carriers can include replacement cost coverage rather than actual cash value, plus business income coverage and building ordinance and law provisions. Post explained that "many insureds really only know about the National Flood Insurance Program (NFIP) as their main option for flood insurance," and that private insurers aim to give the public more tailored options that fit business needs. Risk tolerance varies by client. Some businesses want lower deductibles and broad enhancements. Others prefer high limits across multiple properties and accept higher deductibles to keep premiums manageable.
Brokers should start with business income exposure. Post told Insurance Business that conversations need to go beyond direct physical loss to cover "reduced access to their properties post-loss, how that impacts their rebuild time, how quickly contractors can get in and actually rebuild the property and what the potential loss of income is." Annualized business income values reported to insurers must reflect reality. Building valuations need the same discipline. Post warned: "Considering inflation and rising building and labor costs, insureds and brokers need to make sure they're diligent in seeing the values increasing year over year." Being underinsured in a large flood loss is preventable. It starts with accurate reporting before the event, not after.
Private flood insurers are better equipped than the traditional market. Post said they are "in a better position to be able to offer more tailored flood solutions specific to an insured's needs and risk tolerance." ICW Specialty invests in technology and predictive modeling that improves each year. Private carriers also take a consultative, preventative approach rather than a curative one. That approach sets this market apart from traditional counterparts. Post added: "With the private market, it's a greater asset to everybody that more people are willing to provide the coverage." More insurers, more products, and more accurate data give businesses real options when a flood event arrives. Brokers seeking deeper resources on commercial flood trends will find sponsored reports and analysis across Insurance Business America's premium coverage.
Carson Post: national underwriting director, flood, ICW Specialty; leads commercial flood underwriting for ICW Group, a national property and casualty insurance carrier.