Homeowners Face Insurance Problems After Atmospheric River Flooding

A rare and deadly atmospheric river hit the South and Midwest over the weekend, dumping as much as 20 inches of rain in parts of Arkansas, Kentucky and Missouri. At least 18 people were killed and hundreds of homes and business were flooded.

AccuWeather estimates the storm caused between $80 billion and $90 billion in economic losses across the region, making it one of the costliest weather disasters of 2025. Much of that burden will fall on individual property owners, who may face out-of-pocket repair costs because most standard insurance policies exclude flood damage. Only about 30 percent of homes in the highest risk areas have flood coverage, according to FEMA.

Newsweek reached out to Floodbase, AccuWeather and Triple-I by email for comment.

Why It Matters

Across the country, homeowners are struggling to find affordable coverage as major insurers pull out of high-risk states and tighten policy terms in response to escalating climate disasters. With fewer options and rising premiums, many families are being forced to go without adequate protection just as severe weather events become more frequent.

What To Know

The worst flooding from the atmospheric river over the weekend was concentrated in southeastern Missouri, northeastern Arkansas, western Kentucky and parts of southern Indiana. In Poplar Bluff, Missouri, aerial footage showed entire neighborhoods submerged, with roads and parking lots disappearing beneath fast-moving floodwaters. Floodwaters surrounded schools, hospitals and police stations across the region.

"This is even more widespread than [the Great Flood of 1937]," Edward Clark, director of the National Water Center, told Newsweek. He warned that some infrastructure could be at risk under continued pressure from rising rivers.

Thousands of homes were damaged or destroyed, including entire apartment complexes and trailer parks that were swept away by flash floods. Rebuilding after the widespread destruction could be costly for homeowners.

"Unless property owners have specific flood insurance, losses and repairs will most likely not be covered by standard policies," AccuWeather chief meteorologist Jonathan Porter said in a report.

A levee failure in Tennessee left nearly an entire town underwater and Domanic Scott told the Associated Press that insurance companies won't give homeowners in the area flood insurance because of their proximity to the Obion River and levees.

"It's the first house we've ever paid off," Scott said. "So if we lose it, we're kind of screwed without a house."

Nationwide, insurance experts are warning that more frequent extreme weather events are exposing cracks in traditional coverage. A recent investigation reported by The Independent highlighted that many policies contain "unfair" or vague language that can be used to deny storm-related claims.

What People Are Saying

Triple-I Senior Director of Media Relations Mark Friedlander previously told Newsweek: "Flood insurance remains the biggest insurance gap across the U.S., with only about 6 percent of homeowners having coverage. Yet, 90 percent of natural disasters involve flooding. Most policies are purchased by residents who are required to have flood coverage, not voluntarily.

"Flooding is not just a coastal issue. All areas of the country are at risk from this hazard. To be fully financially protected from the wrath of Mother Nature, consumers should strongly consider purchasing flood insurance in addition to property insurance. And in most inland areas that are not considered high risk, the cost of coverage is very reasonable—$40 to $50 a month."

What Happens Next

Emergency responders are still assessing damage and performing rescues in some flooded communities. Officials have issued federal emergency declarations, but experts warn that more long-term reform is needed to address the insurance coverage gap.

Updated 4/9/25, 10:04 a.m. ET: This story was updated with additional information.