Westfield Introduces New Flood Coverage and Supports Disaster Relief
Westfield, a major property and casualty insurer, has introduced a new inland flood coverage endorsement designed to protect U.S. homeowners outside of designated high-risk flood zones. This move comes in response to the increasing incidence of flooding in areas previously considered safe, a trend linked to changing weather patterns.
The company developed the new product in collaboration with a global reinsurer.
In conjunction with the launch, Westfield announced a $750,000 donation to the Center for Disaster Philanthropy (CDP) to bolster flood recovery and mitigation efforts. This contribution includes $500,000 for national recovery initiatives and $250,000 earmarked for CDP’s Atlantic Hurricane Season Fund, which specifically addresses flood-related needs during hurricane season.
“The unpredictability of flood events is growing, and risk is no longer confined to FEMA-mapped zones,” said Steve Butler, assistant vice president of personal lines product management and underwriting at Westfield.
Westfield has a history of supporting disaster relief, having contributed over $3.5 million to the CDP since 2016. Furthermore, the insurer’s private foundation distributes $3.5 million annually to nonprofits providing disaster recovery and related support services.
Flood Claims Outside High-Risk Zones
The introduction of Westfield’s new coverage underscores a growing concern: the increasing frequency of flooding in areas not previously considered high-risk. According to data from the Federal Emergency Management Agency (FEMA), more than 40% of flood insurance claims in 2023 originated from outside of designated high-risk flood areas.
As of November 2024, the National Flood Insurance Program (NFIP) had approximately 4.7 million active policies, covering about 3.3% of U.S. households. This represents a small decrease of 0.2% (10,721 policies) compared to November 2023. State-level data reveals significant variations, with New Mexico experiencing a 25.4% increase in policies, while Utah saw a 37.5% decline.
Throughout the previous year, the NFIP received nearly 99,000 claims, with 74,272 resulting in payments. The average payout per claim was $33,905, totaling approximately $2.5 billion in disbursed funds. This highlights the substantial financial impact of flood damage across the nation.
Westfield’s proactive approach, including the new coverage and charitable contributions, reflects an understanding of the evolving flood risk landscape and a commitment to providing support to those affected by these events.
