Why might most homeowners choose not to carry flood insurance?

Many homeowners often opt not to carry flood insurance primarily due to the belief that they live in a flood-safe area. This perception can stem from a variety of factors, including the absence of recent flooding events, local topography, and information provided by community authorities regarding flood risk. Homeowners may rely on these beliefs to assess their risk, leading them to prioritize other insurance needs over flood coverage.

Furthermore, flood insurance is sometimes viewed as unnecessary for those who think their location is inherently safe from flooding, which may not take into account changing weather patterns or other evolving risks. This oversight can result in a significant vulnerability, as floods can occur in areas previously deemed safe and can lead to devastating financial losses without adequate coverage in place.