Hidden Flood Risk After Wildfires: A Guide for Insurance Agents

When wildfires devastate landscapes, they leave behind more than scorched earth. These barren, fire-affected areas become highly susceptible to flash flooding and mudflows, creating a unique and significant risk for property owners. As an insurance professional, understanding and communicating this risk to your clients can help them secure the protection they need.

Why Wildfires Increase Flood Risk

Wildfires destroy vegetation, which normally acts as a natural barrier, absorbing rainfall and slowing runoff. After a fire, the ground becomes hydrophobic, meaning it repels water instead of absorbing it. As a result, even light rainfall—less than an inch per hour—can cause significant flash flooding and debris flows. Properties downstream or downhill from burned areas face the highest risk.

This increased vulnerability to flooding can persist for five years or longer, depending on how quickly vegetation can recover in the affected area.

Understanding Insurance Gaps

One of the most significant issues for property owners is the misconception that their standard homeowners policy covers flood damage. In reality, flood damage is excluded from most homeowners insurance policies. Without specialized flood insurance, clients remain exposed to potentially catastrophic financial losses.

For properties in post-wildfire zones, the heightened flood risk makes having dedicated flood insurance essential. As a producer, it's critical to highlight this gap to clients who may not be aware of the limitations in their current coverage.

The Importance of Timely Flood Insurance

NCIP Flood insurance is often subject to a waiting period—typically 15 days (0 days for loan closings)—before coverage begins. The National Flood Insurance Program (NFIP) typically has a 30-day waiting period. This is a key selling point for clients in recently burned areas who may feel a sense of urgency to secure protection.

Practical Advice for Insurance Agents and Clients

Here’s how you can help clients protect themselves from post-wildfire flood risks:

1. Assess Local Wildfire and Flood Risk

Encourage clients to evaluate their proximity to recently burned areas, especially if they live in downhill or downstream locations. Burn scars often channel water, dramatically increasing flood potential even in areas previously considered low-risk.

2. Recommend Flood Insurance

Help your clients understand that flood insurance is their best line of defense. The Natural Catastrophe Insurance Program (NCIP) can provide the financial safety net they need in a post-wildfire environment.

3. Advocate for Mitigation Measures

Share actionable steps to reduce flood impact:

Install sandbags or barriers to redirect water.
Clear debris from gutters and drains.
Elevate equipment and valuables where possible.

4. Highlight Coverage Options

Educate clients on the value of protecting their home with flood insurance, highlighting the difference between public and private options. NCIP private flood insurance through CATcoverage.com typically comes with broader coverage, often at a lower price than the NFIP.

Supporting Clients After a Wildfire

Wildfires leave lasting impacts on communities, and property owners often face significant challenges in the aftermath. As a producer, your role is critical in providing guidance and support during this difficult time. By educating clients about the heightened flood risks and helping them navigate their flood insurance options, you can offer a sense of security when they need it most.

Building trust through compassionate communication and tailored solutions ensures that clients feel supported and prepared to protect their homes and businesses against future risks.

Stay Prepared, Stay Protected

Floods are the most common and costly natural disasters in the U.S. The risk of flooding increases dramatically after wildfires.

The good news? With your guidance, clients can secure the coverage they need to protect their homes, businesses, and financial well-being.

When you offer flood coverage through CATcoverage.com, you’re not only helping clients protect what matters most—you’re also building stronger, longer-lasting relationships. Our competitive commissions and high client retention rates mean you can grow your book of business while delivering real value to those you serve. Sign up today to discover competitive options that address this growing risk.