Heightened Flood Risk and Declining Insurance Uptake in the U.S.'s Appalachia Region

Recent catastrophic flooding events in early 2025 have underscored the escalating flood risks in Kentucky, Tennessee, and West Virginia. Flood damages over the past two decades in these states have exceeded $600 million, with a significant impact stemming from factors like intense rainfall, mountainous topography, and decaying infrastructure.

Despite this growing risk, flood insurance take-up rates are sharply declining due to increased premiums under the National Flood Insurance Program’s (NFIP) Risk Rating 2.0. This trend is alarming as it suggests that more residents are opting out of flood coverage, potentially leaving them unprotected against future catastrophic events.