Rare Russian Earthquake Sends Tsunami Waves Across Pacific and Underscores Gaps in U.S. Flood Coverage

An 8.8 magnitude earthquake struck near Russia’s Kamchatka Peninsula on July 30, 2025, sending tsunami waves across the Pacific and placing Hawaii under evacuation orders. Although the immediate effects were relatively moderate—waves up to four meters in Russia and smaller surges in Hawaii, Alaska, and along the U.S. West Coast—the event highlighted the unpredictable nature of natural catastrophes and the urgent need for proactive resilience planning.

For the insurance industry, the quake and its aftermath underscored a familiar but underappreciated coverage gap: tsunami damage is not covered by standard homeowners or earthquake insurance policies. Instead, it falls under flood insurance—a separate policy that many coastal property owners do not carry. The low national uptake of flood coverage, even in high-risk coastal zones, raises the possibility of significant uninsured losses in future, more destructive events.

Tsunamis represent a high-consequence, low-frequency peril, which makes them especially difficult for communities and insurers to prepare for. While this particular tsunami did not result in major damage in the U.S., it provided valuable data for catastrophe modelers and insurers to better understand wave behavior, travel times, and regional vulnerabilities.

The event also reinforced the broader importance of multi-hazard preparedness. Flooding, whether from tsunamis or inland storms, is becoming more common and costly. Building a more resilient insurance and infrastructure system will require stronger collaboration between government entities like the NFIP, private insurers, and local communities. Long-term, this means improving coverage accessibility, investing in flood-mitigation strategies, and encouraging a cultural shift toward proactive risk management.