Low Flood Insurance Uptake in Wisconsin Amid Rising Flood Risks

Following a significant flooding event in Milwaukee, data reveals that only 1,186 households hold federal flood insurance in the area amid a broader state trend of low policy uptake. Wisconsin reports just over 10,500 federal flood insurance policies across more than 2.7 million households, despite projections that flooding incidents will outnumber fire events by a factor of five over the coming decades in low- to moderate-risk zones. The state's limited floodplain regulations contribute to vulnerabilities, with no mandated building elevation or construction restrictions in flood-prone areas. Flood insurance in Wisconsin is primarily provided through the National Flood Insurance Program (NFIP), a FEMA-managed initiative, with private insurance as a secondary option. NFIP rates are based on flood zone mapping and historical data, excluding climate change projections, and require federally backed mortgage holders in high-risk zones to maintain coverage. Private insurers assess risk on property-specific factors and have more discretion in policy acceptance and retention. Homeowners and renters insurance policies typically exclude flood damage coverage; however, NFIP offers separate flood insurance for renters covering up to $100,000 of contents. The federal program caps building coverage at $250,000, with compliance coverage to support adherence to flood codes during rebuilding. Private policies may offer higher replacement cost benefits for higher-value properties. Despite flood risks present even outside designated floodplains, many residents underestimate their need for flood insurance. Industry experts highlight the importance of securing coverage ahead of flood seasons, noting the standard 30-day waiting period for NFIP policies. Stateful resources and local agents provide guidance to consumers navigating NFIP and private flood insurance options in Wisconsin.