On August 11, 2026, a powerful derecho swept across the Midwest and Ohio Valley, producing widespread damaging winds, power outages and flooding across parts of Illinois, Indiana, Ohio and Kentucky. Nearly one million customers lost power at the height of the storm.
A derecho is a fast-moving, organized line of severe thunderstorms capable of producing widespread straight-line wind damage. During the August 11 event, the National Weather Service reported that thunderstorms developed across eastern Iowa before organizing into an intense line as they moved through northern Illinois and northwestern Indiana.
For property owners, however, one of the biggest lessons from this storm is not simply how much damage severe weather can cause. It is how different types of damage from the same storm may fall under completely different insurance coverage.
Wind Damage and Flood Damage Are Not the Same Coverage
According to a recent report from Insurance Business, standard homeowners and commercial property policies generally provide coverage for wind and hail damage. Flooding, however, typically requires separate flood coverage.
That distinction can become especially important with a storm like this one.
The derecho brought powerful winds first, but flooding continued to threaten communities after the initial storms had passed. The National Weather Service had flood watches in effect across portions of Indiana, Kentucky and Ohio on August 11, warning that multiple rounds of thunderstorms could produce both damaging winds and flooding.
A building owner could therefore experience roof or exterior damage from the wind and then water damage from rising or accumulating floodwater—with the two losses potentially handled very differently by insurance.
Being Outside a Flood Zone Does Not Mean You Are Outside Flood Risk
One of the more concerning statistics highlighted by Insurance Business is that only about 4% of U.S. homeowners carry flood insurance. The publication also cited 64% of homeowners said they did not believe their property was at risk of flooding.
Many of the communities affected by the August storms were also located outside federally designated flood hazard areas, where lenders generally do not require the purchase of flood insurance.
But a flood map does not determine where water can go.
Heavy rainfall, saturated ground, nearby creeks, drainage systems, low-lying areas and the slope surrounding a property can all contribute to flood exposure.
That is why homeowners and commercial property owners should understand their actual risk rather than assuming that being outside a mapped flood zone means flood insurance is unnecessary.
The Uninsured Flood Gap Is Significant
The financial impact can be substantial.
Insurance Business cited a study estimating approximately $24.4 billion in annual flood damage to U.S. single-family homes, with roughly 70% of those losses uninsured.
For property owners, that makes flood coverage worth discussing before severe weather is in the forecast, not after water has entered the building.
Consider asking your insurance advisor:
“If floodwater entered my building tomorrow, which of my policies would that claim fall under and do I actually have that policy in place?”
Business Owners Should Also Consider Power Outages
The August 11 derecho created another important insurance question for businesses: What happens when the power goes out for an extended period of time?
This can be particularly important for businesses that rely on continuous power, including:
- Cold-storage and food-production operations
- Farms and agricultural businesses
- Climate-controlled self-storage facilities
- Manufacturers
- Restaurants and other businesses using refrigeration
Whether lost income or other losses resulting from an off-site utility failure are covered depends on the specific utility service interruption and business income language included in the policy, as well as the circumstances and duration of the outage. Coverage can vary significantly by carrier and policy.
Know the Gaps Before the Storm
Severe weather can create several losses at once: wind damage, water damage, extended power outages and interruptions to normal business operations.
That does not necessarily mean one insurance policy responds to all of them.
Whether you own a home, commercial property, farm or self-storage facility, understanding how your coverage responds before the next storm gives you an opportunity to identify potential gaps while you can still do something about them.
Have questions about flood, property or business interruption coverage? Johnson Insurance can help you review your current insurance program and better understand how your policies may respond when severe weather strikes.
