Water Damage Statistics: Exploring Costs and Insurance Claims

When people think about water damage, they often associate it with floods, hurricanes, and other catastrophic events. But burst pipes, failed appliances, and other events inside the home can also cause water damage.

Whether storm damage caused catastrophic flooding or undetected minor leaks led to drywall damage, both types of damage have one thing in common — they can cost the homeowner a lot of money. Insurify analyzed water damage statistics, National Flood Insurance Program (NFIP) data, and insurance statistics to identify trends in water damage.

Key takeaways

• The Joint Economic Committee estimates that flood damage causes a total economic cost of nearly $180 billion to $496 billion annually in the U.S.

• Flooding events in 2023 cost the U.S. $7 billion in damages, according to the National Oceanic and Atmospheric Administration (NOAA).

• Catastrophe claims made up 61% of home insurance claims in 2023, according to the 2024 LexisNexis Home Trends Report.

• Louisiana had the most in NFIP claim payments ($13.2 billion) for high-risk flood areas, per NFIP data as of November 2024.

• Florida had the most NFIP flood policies in force (722,178) as of November 2024.

• Climate change is making flood risk more difficult for insurers to evaluate, according to the Council on Foreign Relations.

Flood damage statistics

Floods are the most common natural disaster in the U.S. and the most costly. Just 1 inch of water can cause around $25,000 in damage to a home.

Hurricanes and the accompanying storm surge, heavy rain, flash floods, snow, and overflowing dams are the most common causes of flood damage in the U.S., costing billions of dollars annually.^[1]

Flood damage costs have averaged $46 billion per year over the last decade, according to a 2024 report  from the Congressional Budget Office (CBO). And the report predicts damage is only going to get worse. The CBO expects climate change to increase flood damage by one-quarter to one-third by 2050. 

A standard homeowners insurance policy doesn’t cover flood damage, so most homeowners turn to the NFIP to obtain a flood insurance policy. And those living in high-risk areas with federally backed mortgages must obtain a policy through the NFIP or private insurers.

The average insurance payout for water damage

The average insurance payout for water damage through the NFIP was $66,000 from 2016 to 2023, as reported by the Federal Emergency Management Agency. FEMA grants only averaged $3,000 during the same period, per FEMA. Unlike disaster relief, flood insurance covers a home regardless of whether the president declares a disaster, and it offers more robust coverage.

When large-scale disasters strike, average insurance payouts dwarf disaster assistance even further. The Insurance Information Institute (Triple-I) analyzed the 10 most significant flooding events per NFIP payouts (in 2023 dollars). The NFIP paid an average of $152,152 for Hurricane Katrina claims in 2005, the most of all significant flooding events in the U.S., Triple-I found.

The NFIP paid an average of $146,589 for claims made after Hurricane Harvey in 2017, making it the second-highest average payout. Storms and flooding in Louisiana in 2016 caused the third-highest average payout, with the NFIP paying an average of $116,775 for claims after those storms.^[2]

Costs from weather-related flooding events in 2023

Billion-dollar flooding events in the U.S. cost nearly $4.5 billion in damages per year on average, according to data from NOAA. The agency reported that in 2023, no areas were immune to weather-related perils, including numerous accounts of flooding.

In the first quarter of 2023, California experienced severe flooding from numerous atmospheric rivers. When they hit land, these rivers dropped copious amounts of snow and rain across the state, causing $4.5 billion in damages.

June of 2023 served up severe storms that affected not only Midwest states such as Ohio but also the Gulf and the South. These areas reported more than 1,000 instances of weather-related damage, with costs totaling $3.8 billion.

In July 2023, the Northeast experienced $2.2 billion in damages from severe weather, including flooding in some areas of up to 8 inches within 24 hours. More than $100 million in damages occurred in West Point, New York, alone.

The Northeast and East Coast suffered $1.6 billion in damages in August 2023 from severe weather events spanning from New York down to Georgia.^[3]

August brought Hurricane Idalia to bear across Florida, parts of Georgia, and the Carolinas. Idalia was the strongest hurricane to make landfall in Florida’s Big Bend region in more than 125 years. It produced rainfall of 5–10 inches in affected areas and cost $3.6 billion in damages.

Flood damage claims and costs by state

FEMA updates its flood zone maps through a variety of methods to indicate areas of flood risk as well as the level of risk. But the Government Accountability Office (GAO) has noted that flood maps don’t consistently assess current and future flood risks. Any zone that begins with an A or V has the highest risk of flooding — a 1% chance annually — and is considered a special flood hazard area (SFHA).

Because of their higher risk of flooding, homes and businesses in these special flood hazard areas must have flood insurance if they have a federally backed mortgage. Property owners can buy flood insurance through the NFIP or private insurers.

The NFIP makes public the data for the amount of damaged property and claim payments made through its Policy and Loss Statistics report. As of November 2024, the report put total damaged properties at 2.2 million for single-family dwellings in all flood-risk areas across the U.S. For SFHAs (those in the A or V risk category), Florida has the highest number of single-family losses, and Louisiana has the second-highest.

Florida’s damaged properties total 301,603, and Louisiana comes in at 285,434. Texas (160,985) and New Jersey (134,428) rank third and fourth, respectively, totaling about half that of the top two states.

Payments from NFIP claims across the U.S. for single-family dwellings in SFHAs totaled nearly $63 billion, according to NFIP data. Louisiana received the highest amount of NFIP payments for flood damage for single-family dwellings in all the state’s high-risk areas. At just over $13 billion, citizens in Louisiana received more than $5 billion more in flood-damage payments than people insured with NFIP in any other state.

The following chart lists the NFIP claims and NFIP payments for single-family dwellings in SFHAs in all states, as of November 2024.

State	Single-Family Dwelling Claims	Single-Family Dwelling Payments
Louisiana	285,434	$13,206,385,143.87
Florida	301,603	$8,143,244,481.79
Texas	160,985	$7,484,219,661.89
New Jersey	134,428	$4,280,136,105.49
New York	87,963	$3,182,553,985.00
Mississippi	38,138	$1,775,817,693.49
North Carolina	71,484	$1,155,808,374.10
Alabama	28,340	$599,361,780.98
Pennsylvania	37,571	$588,263,975.61
South Carolina	32,457	$575,931,220.88
Missouri	32,008	$475,833,271.42
Virginia	32,417	$470,973,294.73
Connecticut	17,754	$361,130,021.01
Illinois	30,727	$337,110,625.54
California	22,559	$315,007,854.31
Georgia	13,312	$267,975,045.26
Massachusetts	18,093	$205,874,341.94
Kentucky	13,814	$202,203,518.08
Tennessee	8,772	$200,392,927.85
Maryland	11,346	$184,951,646.91
Indiana	11,325	$172,014,355.82
Washington	9,196	$171,603,990.15
Iowa	9,036	$158,962,204.83
West Virginia	14,028	$155,056,382.90
Ohio	13,317	$131,910,235.46
Oklahoma	6,646	$129,527,357.17
Arkansas	5,258	$101,653,098.16
North Dakota	4,739	$75,977,722.96
Michigan	8,384	$75,966,997.29
Minnesota	5,726	$69,845,198.79
Nebraska	3,907	$58,040,228.34
Wisconsin	4,886	$55,585,306.53
Hawaii	2,531	$52,758,129.64
Oregon	3,137	$47,417,362.50
Kansas	3,813	$47,285,024.84
Rhode Island	3,532	$37,056,162.13
Delaware	4,318	$36,830,525.40
Colorado	1,902	$36,788,633.51
Vermont	1,473	$31,965,975.47
Maine	1,965	$27,260,933.30
New Hampshire	1,884	$24,535,625.37
South Dakota	1,453	$22,285,528.63
Arizona	2,027	$21,072,656.86
Nevada	743	$10,753,141.92
New Mexico	829	$10,290,126.50
Montana	747	$9,849,638.63
Alaska	404	$6,161,440.19
Idaho	545	$5,366,981.85
Utah	188	$1,541,460.63
Wyoming	182	$1,150,241.42

Flood insurance policy information by state

Flood insurance offers coverage for water damage that homeowners insurance doesn’t cover, and even low-risk areas experience flooding. The NFIP reports that one-third of NFIP claims originated outside high-risk flood areas between 2013 and 2023.^[4] And since 1998, nearly all U.S. counties (99%) have experienced a flood.

Across all 50 states, U.S. jurisdictions, and territories, 22,000 communities participate in the NFIP, according to a January 2025 report by the Congressional Research Service. With more than 4.7 million flood insurance policies, the NFIP provides coverage in excess of $1.3 trillion.

This chart reflects the median current cost of NFIP insurance policies in force for single-family homes and the number of policies in force by state as of 2023.

State	Policies in Force (PIF)	Median Current Cost of Insurance
Connecticut	20,294	$1,174
Massachusetts	32,550	$1,106
Hawaii	10,042	$1,023
Rhode Island	7,974	$986
Vermont	2,244	$985
New Hampshire	3,933	$972
West Virginia	7,945	$972
New Jersey	113,958	$953
New York	118,453	$943
Maine	5,373	$905
Kentucky	13,647	$886
Delaware	15,983	$884
South Dakota	2,106	$883
Wyoming	1,339	$881
Pennsylvania	33,415	$880
Illinois	22,274	$873
Minnesota	5,806	$858
Kansas	5,721	$840
Montana	16,229	$836
Oregon	3,224	$836
Missouri	11,738	$827
Alabama	27,907	$825
Idaho	4,188	$825
Wisconsin	8,436	$804
Iowa	6,752	$802
Mississippi	45,961	$801
Indiana	13,877	$800
New Mexico	8,670	$800
Nebraska	5,787	$795
Tennessee	19,032	$795
Washington	22,717	$795
Oklahoma	8,009	$793
Ohio	18,574	$787
Colorado	11,386	$786
Louisiana	397,824	$786
Arkansas	9,533	$781
North Carolina	103,674	$780
California	151,816	$779
Texas	586,680	$779
Florida	894,619	$776
North Dakota	6,132	$761
Arizona	18,119	$760
Georgia	60,473	$760
Michigan	15,298	$756
South Carolina	125,063	$714
Virginia	73,510	$708
Nevada	7,541	$689
Maryland	31,242	$629
Utah	5,836	$602
Alaska	1,805	$412

Homeowners’ concern about flood damage

Compared to other perils, homeowners are most concerned (54%) about damage from thunderstorms, a category that includes flooding and tornadoes, according to a 2023 survey by Triple-I that assessed how homeowners perceive risk.

In that same survey, all regions identified the category of thunderstorms as the biggest peril they face. But the perceived risk varies by region. The Midwest, which includes the region known as “Tornado Alley,” had the highest level of concern, with 75% considering thunderstorms the largest threat to home damage.

In the South, just over half (55%) viewed thunderstorms as the greatest peril, while only 28% saw hurricanes as the biggest threat. In the Northeast, just under half (47%) shared the same view, and in the West, 33% considered thunderstorms the greatest threat, closely followed by 31% who identified earthquakes as the biggest risk.

Flooding is involved in 90% of all federally declared natural disasters in the U.S., according to FEMA. And catastrophe claims made up 61% of weather-related water home insurance claims in 2023, according to the 2024 LexisNexis Home Trends Report.

However, weather-related water damage claims from homeowners insurance decreased from 2022 to 2023. In 2023, more than half (51.4%) of these claims were less frequent and less severe, reflecting decreases of 25.5% and 34.8%, respectively, compared to 2022, as reported by LexisNexis.

Flood insurance adoption by income

The Congressional Budget Office (CBO) reports that higher incomes, in particular those with incomes higher than the 2023 U.S. household median income ($80,610, per the U.S. Census Bureau), have higher rates of obtaining NFIP policies.

Among households making less than $41,489 annually, 11% are at risk for flooding, but only 4% have policies. But households making more than $99,038 have fewer dwellings that need policies (8%), and a greater percentage (14%) have them, reports the CBO.

Communities where most residences are second homes have more than double the amount of NFIP coverage compared to communities of primary residences. Only 8% of at-risk primary households have NFIP policies, but 17% of at-risk communities composed of secondary residences have NFIP policy coverage.

Those at risk are still opting into coverage. Of the 22% of homeowners who believe they’re at risk for flooding, most (78%) purchased flood insurance, according to Triple-I. More of those who purchased flood insurance did so through the NFIP (43%) than through private insurance (35%), Triple-I reports.

However, net premiums written for private flood insurance increased each year since 2020, when the total was $302,444,000, according to Triple-I data. Premiums have more than doubled to $803,075,000 in 2023 compared to 2020 numbers.

The evolution of flood insurance pricing

Lowering risk is the best way to lower insurance costs, and the U.S. government has made an effort to help communities lower their flood risk. The Department of Housing and Urban Development (HUD) published a final rule for floodplain management in April 2024. It increases elevation and flood-proofing requirements in an effort to strengthen protections against flood risk, and HUD isn’t alone in its efforts.

FEMA recognized that its risk methodology hadn’t changed in 50 years, resulting in pricing disparities where some paid more than they should for their NFIP premiums. So it implemented a new approach to policy pricing on April 1, 2023.^[5]

This new pricing approach weighs more flooding risk variables, accounting for a home’s value and its actual flood risk instead of just flood ratings. This approach helps distribute premiums more equitably and set fair rates. But many with lower incomes aren’t taking advantage of this protection, possibly due to the cost.

Reasons premiums are on the rise

Climate change and inflation make flood risk difficult to evaluate and, thus, premiums difficult to price. This can lead to rate changes, and homeowners have seen their home insurance rates rising.

The Congressional Research Service projected that 66% of NFIP policies would increase under the new rating system, called Risk Rating 2.0. And most homeowners (2 in 3) in a recent Fannie Mae survey have noticed that weather-related events and damage are affecting their home insurance premiums.

On average, property insurance premiums have increased by more than 30% since 2020, and areas with the most risk of natural disasters like hurricanes are experiencing the biggest increase, according to the National Bureau of Economic Research (NBER).

The NBER predicts premiums will continue to rise in areas with high risk from natural disasters if current trends in natural disaster frequency persist.

Climate change makes flood risk more difficult to evaluate, according to the Council on Foreign Relations. Insurers affix a premium to policies based on risk, and to do so, one factor they evaluate when assessing flood risk is past flood events. But climate change can add extremes to future events that substantially change risk in unpredictable ways.

For example, Houston experienced catastrophic flooding in 2017 after Hurricane Harvey dropped 4 feet of rain in the area. Flooding caused widespread home damage, and eight out of 10 homes had no flood insurance because many of them weren’t historically viewed as at risk.

Current modeling estimates that because of climate change, Houston’s likelihood of experiencing this type of catastrophic weather event has increased by 335%.^[6] One degree of heat increases the amount of water in the atmosphere by 4%. So what Houston formerly experienced just once every 100 years is now a risk once every 23 years.

Another step in premium pricing is putting the risk into a dollar amount, usually dollars that represent current dollar value through a formula that buffets against typical inflation. However, inflation can increase, decrease, and experience large changes that lower the value of the dollar compared to when the premium was set.

When homeowners pay their premiums and then make a claim, insurers are paying out in current dollars, which could have less value, and that makes premiums rise. For example, annual inflation had remained around 2% throughout the 2010s. The COVID-19 pandemic caused a spike in inflation, causing it to increase to 7% in 2021 and not fall below 6.5% in 2022.

Non-weather-related water damage statistics

American homeowners commonly make insurance claims for water damage unrelated to catastrophes like hurricanes or floods.

Non-weather-related water damage makes up a large portion of major homeowners insurance losses — costs to repair or replace significant property damage. But this damage is the most preventable, from cleaning gutters and fixing a leaky faucet to knowing the location of the water shutoff valve in the house.

The frequency of claims for non-weather-related water damage

Insurance companies consider non-weather-related water damage to be one peril. But several different causes can lead homeowners to file property damage claims. Leaks, ruptures, and failures from appliances, HVAC units, hot water heaters, and plumbing can cause sudden and accidental events that lead to water damage in the home.

In the U.S., approximately 1 out of every 15 insured homes is likely to face a non-weather-related water damage claim within a typical five-year policy period, according to data gathered by CoreLogic.

Water damage and freezing was the second most frequent type of insurance claim over a five-year period (2018–2022), with an average claim of $13,954, according to Triple-I. In 2022, water damage and freezing made up nearly 28% of homeowners insurance losses. It represented more insurance losses in 2022 than fire and theft combined.^[7]

The rising costs of non-weather-related water damage claims

Non-weather-related water damage losses have decreased from 2022 to 2023, according to a 2024 Home Trends Report by LexisNexis. The loss cost (11.2%), frequency (10.3%), and severity (1.1%) of non-weather-related water damage all decreased in 2023 compared to 2022.

But from 2017 to 2023, LexisNexis reports an upward trend in costs for this type of event. The rise in inflation over this period may have affected the cost of water damage remediation, leading to this upward trend in costs.

Loss costs were highest and most frequent in July and August, when averaged over a seven-year period (2017–2023), while the severity remained fairly steady with slight increases in January and July, according to the LexisNexis report.

The five states with the most claim costs for non-weather-related water damage from 2017 to 2023 are located mostly in the West and ranked in this order: California, Rhode Island, Arizona, Nevada, and Washington, per LexisNexis. And the states with the lowest loss costs are concentrated largely in the Midwest and included South Dakota, Michigan, Iowa, Missouri, and West Virginia.

Types of water damage

Water damage can take on several forms, and different insurance policies cover different types of damage. Most homeowners insurance policies cover damage that originates from the top down, such as from wind-driven rain, ice dams on your roof, and burst pipes. Water flowing from the bottom up, such as floodwater, isn’t covered.

Water damage claims can vary in cost depending on several factors, including the amount and level of damage and the category of water that caused the damage.

These categories don’t reflect categories of insurance coverage, but they can affect the costs of remediation. Higher categories of water damage necessitate higher levels of remediation.

Types of water that can cause damage include:

• Category 1 refers to clean water that originates from a sanitary source or doesn’t contain significant sources of microbial contamination. Sources may include precipitation leaking through the roof, windows, walls, and doors or leaks from plumbing, water heaters, and HVAC systems that are free from antifreeze.

• Category 2 refers to gray water, which contains a contaminant level that can cause illness or discomfort if swallowed. Sources may include overflow from dishwashers, washing machines, or toilets (with no fecal matter) as well as sump pump failures.

• Category 3 refers to black water, which contains pathogens that make it highly contaminated and thus highly unsanitary. Swallowing black water can cause severe illness or even death. Sources may include sewers and toilets, floodwater, and leaks with antifreeze or from other unknown sources.

Defend against water damage

Homeowners can’t change the weather or plan for when their appliances fail, but they can take steps to defend against future water damage. They can protect their homes by conducting regular maintenance and inspections of their roof, gutters, basements, and appliances and finding the right insurance coverage for their needs and location. Homeowners can use Insurify to easily compare home insurance rates.

Methodology and sources

Statistics and information on this page are from the Congressional Research Service, the Federal Emergency Management Agency (FEMA), the National Flood Insurance Program (NFIP), the Insurance Information Institute, LexisNexis, the National Oceanic and Atmospheric Administration (NOAA), the New York Department of Environmental Conservation, the U.S. Department of Housing and Urban Development (HUD), the Congressional Budget Office (CBO), Fannie Mae, the National Bureau of Economic Research, the Council on Foreign Relations, CoreLogic, the state of Massachusetts, and the U.S. Census Bureau.