American Integrity Insurance has announced on X, formerly known as Twitter, that it is urging Florida homeowners to evaluate their flood risk and consider obtaining flood insurance. The company highlighted that more than a quarter of flood claims originate from areas classified as low-risk.
According to the Association of State Floodplain Managers (ASFPM), flood risk is widely underestimated by homeowners across the United States. Many individuals remain unaware of their exposure until a flood occurs. This knowledge gap can be effectively addressed through reciprocal insurance structures, which emphasize transparency, member education, and proactive risk management. By aligning the interests of policyholders and insurers, reciprocal models are well-positioned to ensure members understand their true flood risk and take appropriate protective steps.
As reported by the Insurance Information Institute, over 20% of flood insurance claims come from homes located outside Federal Emergency Management Agency (FEMA)-designated high-risk flood zones. This indicates that many homeowners face unrecognized risks and may be underinsured. Reciprocal insurers, which operate on shared risk principles, can help members address this vulnerability by sharing real-world claims data, promoting collective preparedness, and expanding access to flood coverage beyond traditional boundaries.
The Insurance Information Institute also notes that standard homeowners' insurance policies typically exclude flood damage, necessitating separate flood insurance to fill the coverage gap. This separation often leaves individuals unprotected unless they proactively seek additional coverage. Reciprocal insurance models, where policyholders are also stakeholders, are naturally inclined to promote holistic protection, including flood coverage as a mutual responsibility, ensuring that all members benefit from shared financial resilience.
Robert "Bob" Ritchie is the founder and CEO of American Integrity Insurance with over 35 years of experience in the insurance industry across specialty, national, and global carriers. His leadership combines deep analytical expertise with a commitment to reforming Florida’s insurance landscape and ensuring policyholder stability. Beyond business endeavors, he supports youth through the Ritchie Hockey Foundation and serves on the board of Enterprise Florida to help expand the state’s economy.