A new report from the largest private flood insurer in the U.S. highlights the increasing flood risk for properties located in Kentucky, Tennessee and West Virginia.

Neptune Flood released its analysis of the increasing flood risk across Appalachian states after they were hit with catastrophic flooding in early 2025, fueled by increased rainfall, mountainous terrain and aging infrastructure.

Price increases under the National Flood Insurance Program have caused a decline in flood insurance participation. Fewer than 1 percent of homes have flood insurance across all three states.

In the 2022 Kentucky floods, 95 percent of damaged homes were uninsured, according to the Neptune’s analysis.

In a separate survey, Neptune found that 60 percent of homeowners believed their homeowners insurance covered flood loss.

In addition, between 2021-2024, NFIP policies across the three states fell by 17 percent.

The report analyzes the protection gap and highlights opportunities for private market solutions.

Recent significant flooding events include:

• 2025 Flooding: 21 deaths, 1,100+ NFIP claims
• 2022 Eastern Kentucky flood: 44 deaths, ~9,000 properties damaged
• 2016 West Virginia flood: 23 deaths, $1.1B+ in property damages
• 2010 Nashville flood: 21 deaths, $2B+ in property damages

The analysis showed that flood exposure is significantly underestimated.

FEMA maps identify an estimated 365,000 buildings in high-risk flood zones across the three states but First Street Foundation estimates found approximately 950,000 properties face substantial flood risk.

In the last 20 years, insured flood losses exceed $600 million, with far greater uninsured losses, the analysis showed.

Premium increases under the NFIP are causing strain in the region.

Dozens of counties across the region are facing premium increases of 200 percent or more, with many counties facing premiums equal to 6–9 percent of their household income.

“Across the United States, millions of homes face rising flood risk, yet too many remain uninsured due to affordability challenges and outdated flood maps,” said Trevor Burgess, CEO of Neptune Flood. “Nowhere is this crisis more evident than in Appalachia, where flood exposure is climbing, insurance participation is falling, and federal solutions are faltering. The private flood insurance market is here to help close the protection gap.”