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What to know about flash floods and homeowners insurance

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1 year ago

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A drone view shows flooded houses, following torrential rains that unleashed flash floods along the Guadalupe River in San Angelo, Texas, on June 4, 2025, in this screen grab obtained from a social media video.

Patrick Keely | Patrick Keely Via Reuters

‘Every home can be exposed’

Texas is one of the most flood-prone areas in the U.S., Worters said — flash floods, river overflows and tropical storms result in billions of dollars in insured losses per year.

“Flooding in Texas has become a growing threat,” she said.

But it’s a nationwide risk. Over the past 20 years, 99% of U.S. counties have experienced a flood event, according to the National Flood Insurance Program by the Federal Emergency Management Agency. About 40% of NFIP claims are from outside high-risk zones.

While floods can be bigger risks in areas near bodies of water, they can happen anywhere, “even on a mountaintop,” Worters said.

“Every home can be exposed,” she said.

For example, in 2024, Hurricane Helene caused massive flooding in mountainous areas such as Asheville, North Carolina. Less than 1% of households there were covered by the NFIP, according to a report by the Swiss Re Institute.

Parts of central North Carolina also experienced flash floods over the July Fourth weekend, as Tropical Storm Chantal made its way inland. “This historic weather event caused flooding like we haven’t seen in several decades in the central part of the state,” Joey Hopkins, North Carolina’s transportation secretary, said in a press release Tuesday.

Why homeowners insurance doesn’t cover floods

Insurers tend to avoid covering risks that produce “highly correlated losses” that can be “catastrophic in nature,” said Daniel Schwarcz, a law professor at the University of Minnesota Law School who focuses on insurance law and regulation. Floods are one such disaster, as are earthquakes.

“When it affects one person dramatically, it often affects many, many people dramatically,” he said.

About 90% of all presidentially declared U.S. natural disasters involve flooding, per FEMA.

How some homeowners can lower their insurance rates as wildfires and floods drive up costs

Residents might have water damage coverage included in their homeowners policy, which can cover events such as pipe bursts, said Karl Susman, president and principal insurance agent of Susman Insurance Services, Inc. in Los Angeles. 

But such provisions do not cover damage from rising water levels, experts say. 

“When you have sudden, intense flooding that’s caused by heavy rain in a short period of time, that’s a flash flood,” Worters said. “That’s something that would not be covered on your regular homeowners [policy].”

Where to get flood insurance

Because standard policies often explicitly exclude flooding, if you want coverage, you’ll need a standalone policy.

You can get flood insurance from FEMA’s NFIP, which is considered the primary source of flood coverage in the U.S. The NFIP typically covers up to $250,000 in damages to a residential property and up to $100,000 on the contents.

As of 2024, the NFIP has more than 4.7 million flood insurance policies in force, providing coverage in excess of $1.28 trillion, according to FEMA.

If you have an expensive home or expect more severe damage to your property, consider asking an insurance agent about so-called “excess flood insurance,” Worters said. Such policies are written by private insurers that cover losses over and above what’s covered by the NFIP, she said.

If you decide to get coverage through the NFIP, keep in mind that there is usually a 30-day waiting period before the new policy goes into effect. 

NFIP may not be your only option. Some private insurers now offer standalone flood insurance policies as risk modeling and actuarial projections — or financial estimates for future events — have improved, said Worters. 

According to a recent report by LendingTree using 2023 nationwide data from S&P Global, the average cost for private flood insurance is $98 a month. A separate report by NerdWallet using 2025 NFIP rates found that the average flood insurance through FEMA costs $75 a month. 

Keep in mind, however, that the price you pay for coverage will depend on factors including where you live. Compare all the options available to you in your area, as they can be “drastically different” in cost, said Susman. 

Schwarcz said homeowners can sometimes get cheaper policies through private insurance companies as they use different mechanisms from the NFIP. 

“You want to look in both places,” he said.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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