Many residents in high-flood-risk areas, like coastal or riverside communities, have shifted to private flood insurance programs that can cover more damage, said Ben Collier, an associate professor of risk and insurance at the University of Wisconsin-Madison.
The NFIP covers up to $250,000 for homes and buildings and up to $100,000 in personal property. Collier said costs can easily exceed that in the most severe flood situations.
“The National Flood Insurance Program has been priced too low and has run deficits for many years,” Collier said. “The coverage limits are not especially high.”