MARKET OVERVIEW
Navigating Flood and Wind Risks
Key Takeaways
Homeowners are increasingly seeking coverage from the Excess & Surplus (E&S) Residential Property Insurance market. According to the 2025 midyear report from the Wholesale & Specialty Insurance Association (WSIA), this market has grown by 25% year-over-year, highlighting its importance in a changing environment.
Catastrophic (CAT) weather events are driving the demand for E&S solutions. The National Oceanic and Atmospheric Administration reported that in 2024, the U.S. faced $182.7 billion in CAT losses.
Flooding-related economic losses in 2024 amounted to $84 billion, with only $21 billion (25%) insured, according to Aon. Yet only 4% of U.S. homeowners have flood insurance.
Wind deductible buyback policies are becoming popular, particularly in high-risk coastal areas. These policies help homeowners manage affordability and reduce out-of-pocket expenses.
High-value homes are facing increasing challenges due to inflation, capacity constraints, and stricter underwriting practices. Burns & Wilcox provides exclusive solutions for hard-to-place Residential Property risks.
Looking ahead: E&S Residential Property rates are expected to remain firm, especially in high-risk flood zones; capacity is tightening in coastal areas but may stabilize with new entrants; terms and conditions are becoming more restrictive, with higher deductibles and stricter underwriting.
Introduction
In today’s rapidly evolving insurance landscape, homeowners are increasingly turning to the E&S market for specialized Residential Property coverage. Catastrophic weather events, rising property values, and regulatory changes continue to drive this shift. The 2025 midyear WSIA report noted a 25% year-over-year increase in E&S Residential Property Insurance, highlighting the growing demand for tailored solutions that traditional markets often struggle to provide.
While national trends set the overarching tone, regional dynamics greatly influence the real impact on coverage, pricing, and carrier appetite. From wildfires in the West to convective storms in the Midwest and widespread flooding, catastrophic weather events are reshaping underwriting strategies and inspiring innovative coverage solutions. Burns & Wilcox is at the forefront of this transformation, providing exclusive products and expert guidance to assist brokers and agents in navigating the changing landscape of Residential Property Insurance.
Regional Updates
Tightening Market: Wildfire remains the most pressing CAT threat across the Western states, prompting admitted carriers to reevaluate brush modeling, property age, and geographic concentration. The market is tightening rapidly, especially outside California, as carriers seek to balance their portfolios and reduce exposure in high-risk zones. Burns & Wilcox offers tailored solutions like the Colorado Wrap, designed to fill coverage gaps for high-value properties in wildfireprone areas.
In many cases, carriers now require mitigation measures such as defensible space, fire-resistant roofing, and vegetation management before offering coverage.
deductibles. The E&S market is stepping in with creative strategies—such as wind deductible buybacks and layered coverage structures to help insureds manage affordability while maintaining robust protection.
Regional Updates
FLORIDA & MID-ATLANTIC
Reforms & Risks: Florida’s recent legal reforms have opened the door for dozens of new carriers, expanding the E&S appetite for homes with prior claims, lapses, or ongoing renovations. While this has created more opportunity, it has also introduced complexity, requiring brokers to navigate a rapidly evolving marketplace.
In the Mid-Atlantic, particularly the Carolinas, property rates are softening but Liability coverage remains a challenge. Flood risk is increasingly top of mind, especially after events like Hurricane Helene, which brought catastrophic inland flooding to areas previously considered low risk.
in convective storm activity, including tornadoes, hail, and wind-driven rain. These events are no longer isolated to traditional “tornado alley” and are expanding into the Northern Plains and Great Lakes regions. Admitted carriers are responding with stricter underwriting guidelines, such as declining coverage for homes with older roofs. E&S carriers are filling the gap with flexible solutions like roof depreciation schedules and exclusions for aging structures.
MIDWEST
New Solution for High-Value Homes
For high-value homes in CAT-prone regions, securing comprehensive coverage has become increasingly challenging. Burns & Wilcox now offers a powerful solution through its partnership with Atain Insurance Companies, an “A” rated carrier (Excellent by AM Best).
The exclusive high-value Homeowners product is available throughout California, Colorado, and Florida, along with the Gulf and Atlantic states. This expanded capacity allows brokers to better serve clients with elevated replacement costs, unique exposures, or coverage gaps left by admitted carriers. Additionally, Burns & Wilcox can add a contents-only offering to provide a more complete solution.
Flood Insurance: A Rising Priority
Flood Insurance has long been underutilized, often viewed merely as a lender requirement rather than a critical component of comprehensive Property protection. Despite the increasing frequency and severity of flood events, only 4% of U.S. homeowners currently carry flood insurance, according to the Federal Emergency Management Agency (FEMA). This gap is especially concerning given that floodrelated economic losses in 2024 exceeded $80 billion, with less than $20 billion insured.
The private Flood market has grown significantly, now representing 15% of the primary Flood Insurance space. This growth is driven by enhanced product variety, increased capacity, and the ability to offer tailored solutions that go beyond the limitations of the National Flood Insurance Program (NFIP). However, uptake remains a challenge, largely due to outdated flood maps and limited consumer awareness.
Brokers and agents are increasingly turning to private Flood Insurance options to meet client needs, especially in high-risk areas where traditional coverage falls short. The market now offers parametric flood products, excess flood coverage, and digital platforms like IssueQuick from Burns & Wilcox that streamline quoting and policy issuance. These innovations allow for more comprehensive protection, including coverage for basements, pools, and auxiliary structures.
Education and consistency are key. Successful brokers integrate flood coverage into every property submission, understand policy language nuances such as Replacement Cost Value vs. Actual Cost Value, and evaluate how excess policies interact with primary coverage. By doing so, they not only close the coverage gap but also build long-term relationships based on trust and expertise.
Looking Ahead
RATE TRENDS
Rates are expected to remain firm with potential increases in high-risk flood zones due to recent loss activity and reinsurance pressures.
CAPACITY SHIFTS
Capacity is tightening in coastal regions, with some carriers reducing exposure or exiting specific markets. However, new entrants may help stabilize availability.
TERMS & CONDITIONS:
Terms and conditions are becoming more restrictive, with higher deductibles, narrower coverage definitions, and increased scrutiny on property valuations and mitigation efforts.
Tips for Brokers Agents
#1 Include Flood options with every Property submission.
Use modeling tools to help identify high-risk properties and educate clients on coverage gaps.
#4 Set realistic expectations.
Educate clients on pricing, terms, and timelines to avoid surprises and build trust.
#2 Use wind deductible buybacks.
Particularly in coastal areas, these programs help reduce financial burdens and improve coverage accessibility.
#5 Focus on stability.
Clients value carriers with consistent renewal experiences and sustainable pricing. Avoid quick fixes and short-term solutions.
#3 Submit complete data.
Clean, detailed submissions speed up underwriting and improve quote quality.
#6 Partner with Burns & Wilcox.
Our team of experts assists brokers and agents in navigating complex risks, accessing exclusive markets, and delivering customized solutions.
As wind, flooding, and other CAT weather events become more unpredictable and severe, success relies on flexible coverage, creative risk-sharing strategies, and proactive mitigation efforts.
Burns & Wilcox is here to help. Our experts specialize in crafting customized solutions for high-risk properties. Connect with us today to explore comprehensive Residential Property Insurance options tailored to your clients' evolving needs.
Contributors
Kate Wright
Associate Vice President
Senior Regional Practice Group Leader
Personal Insurance
Burns & Wilcox
Indianapolis, IN
Click here for contact details >
Brad Turner
Vice President
National Product Manager Flood
Burns & Wilcox
Morehead City, NC
Click here for contact details >
Justin Pressly
Associate Managing Director
Burns & Wilcox
Morehead City, NC
Click here for contact details >
Lauren Glass Senior Underwriter
Personal Insurance
Burns & Wilcox
New Orleans, LA
Click here for contact details >
This commentary is intended to provide a general overview of the issues contained herein and is not intended, nor should it be construed, to provide legal or regulatory advice or guidance. If you have questions or issues of a specific nature, you should consult with your own risk, legal, and compliance teams.