Flooding is a huge issue for the United States, with billions in losses annually and many people uninsured because of lack of availability, unaffordable coverage, or lack of understanding as to what policies provide what coverage.

NFIP has been the go-to for flood insurance since 1968. There have been struggles over the years and there are flaws in the system, including mapping and the ability to charge actuarially correct premiums for the risk exposure. Changes have been made, and the industry has started providing some policies. ISO has developed both commercial and personal flood programs. Some private carriers are developing flood policies based on the standard NFIP provisions. Another alternative is parametric policies.

Parametric policies are often used for catastrophic losses and offer immediate coverage to the insured based on a specific trigger. Once that trigger has been reached, funds are paid out, often immediately before proof of loss is sent to the insurer. There are no adjusters required to visit the loss location. Once an insured notifies the company that they have sustained a loss, funds are sent and the file is either audited later or the insured is required to provide proof of loss documents later. Jumpstart is a company providing parametric earthquake coverage. see Jumpstart Insurance Policy Analysis.