Rising demand for flood insurance as 90% seek full coverage after 2024 hurricanes: Neptune Flood survey

Neptune Flood, a provider of private flood insurance in the United States, has released findings from its fifth annual Neptune Consumer Survey of Flood Awareness, which highlights growing demand for tailored flood insurance solutions.

Conducted in collaboration with the University of South Florida St. Petersburg Customer Experience Lab, the survey provides insights into the shifting landscape of flood insurance and consumer sentiment nationwide.

As severe weather events become more frequent and climate awareness continues to grow, the survey underscores the increasing demand for tailored flood insurance solutions.

The results reveal key trends in risk perception, insurance adoption, and consumer preferences, offering a clearer picture of how Americans are approaching flood protection.

More homeowners recognise the rising threat of floods, with 77% of respondents acknowledging increased risk—up from 63.9% in 2023. The impact of the record-breaking 2024 hurricane season, which saw five US landfalls, has heightened awareness and encouraged more homeowners to consider their insurance options.

This shift in perception is also driving a greater willingness to invest in flood insurance, with only 2.2% of respondents unwilling to pay higher premiums—down from 6.6% the previous year. More homeowners now view flood insurance as an essential safeguard.

Younger generations are at the forefront of this changing perspective. Respondents aged 18-34 demonstrated the highest levels of concern regarding flood risk, reflecting a generational shift in attitudes toward climate resilience. However, cost remains a significant obstacle. Nearly 80% of respondents reported that the perceived expense of flood insurance had influenced their home-buying decisions, while nearly 70% of non-policyholders cited a lack of perceived risk as their primary reason for forgoing coverage.

Regional differences also shape insurance preferences. In the Midwest, homeowners show a strong preference for private insurers, valuing higher coverage limits and flexible policy options. In contrast, respondents from the Mid-Atlantic region lean toward the National Flood Insurance Program (NFIP), citing trust and stability as primary reasons for their choice.

Comprehensive coverage remains a key factor in consumer decision-making. Nearly 90% of respondents expressed interest in policies offering benefits such as temporary living expenses and replacement cost coverage for home contents, reinforcing the importance of well-rounded insurance solutions that provide financial security beyond basic coverage.

The survey, conducted in November 2024, gathered 881 qualified responses from homeowners across 18 states. Utilising Qualtrics to develop the questionnaire and Amazon MTurk for distribution, the research incorporated rigorous validation measures, including attention checks and reCAPTCHA filters, to ensure high-quality data. These steps reinforce the reliability of the findings, enabling meaningful year-over-year comparisons and deeper insights into evolving flood insurance trends.

Trevor Burgess, Neptune Flood’s President and CEO, added: “These findings highlight both the opportunities and the responsibilities we have as flood insurance industry leaders. By leveraging data-driven insights, Neptune can continue to innovate and deliver policies that empower homeowners to protect their properties and families against an evolving risk landscape.”

Dr Philip J. Trocchia, Professor at the University of South Florida St. Petersburg Customer Experience Lab, commented: “The year-over-year trends clearly show a growing awareness of flood risks among homeowners. This heightened awareness, coupled with Neptune’s innovative approach to insurance, presents a unique opportunity to address the gaps in coverage and meet the increasing demand for customised flood protection.”

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