Around the Industry: The Future of Flood Insurance Remains Uncertain (February 2026)
Reading time • 1 min
By Matic
The National Flood Insurance Program was set for a makeover in December, but officials continue to kick the can down the road. While many portions of the U.S. have faced extreme winter weather, homeowners could actually get a break in home insurance premiums by making a few prevention upgrades. New research also has economists rethinking whether or not it’s possible for some buyers to spend 30% or less on housing costs.
National Flood Insurance Program remains in limbo
Despite a FEMA Review Council being tasked with making recommendations on the National Flood Insurance Program, a deadline extension to March 25 offers little transparency on when to expect any updates. As it stands, the program will continue to operate as usual, but some industry insiders wonder if any changes can actually be expected this year.
Winter prevention measures could help keep premiums low
An extreme winter for much of the country has shown that catastrophic natural disasters aren’t confined to summer hurricanes and wildfires. Many insurers are promoting winter weather mitigation efforts to reduce the risk of claims. Potential discounts for homeowners include insulating pipes, reinforcing roofs, installing fire-resistant building materials, and more.
Does the 30% housing affordability threshold still make sense?
The traditional financial advice for homebuyers is to spend no more than 30% of income on housing. But the National Association of Realtors points out that this can be difficult thanks to rising home insurance premiums, property taxes and sales prices. Looking at metro area trends in addition to personal finances can help uncover whether or not it’s a realistic target.
Hawaii ponders lava zone subsidies, Montana insurance commissioner wants to hear about premium hikes, and California hopes to buy more time for homeowners
- Hawaii bill would offer home insurance subsidies in lava zones: Home affordability is a challenge for low-income families in Hawaii. The proposed subsidy would help address insurance premiums for homeowners that have ballooned dramatically in recent years.
- Montana’s mild winter sparks wildfire concerns: State officials are predicting a higher risk of fires in forested parts of the state this summer, underscoring the challenge of many Montana homeowners to keep home insurance coverage. Insurance Commissioner James Brown is encouraging homeowners to reach out to the state in the event of non-renewal or excessive premium increases.
- California legislation targets nonrenewals: A California Senate bill seeks to give homeowners more time to keep home insurance coverage. If passed, insurance companies will be required to give six months’ notice before a nonrenewal, as well as information on repairs that could keep them eligible for coverage.
