Floods are raging in Minnesota. But few have flood insurance, state commerce agency says.

MINNEAPOLIS — Just one inch of floodwater can cost homeowners $25,000 in damage, according to FEMA. But as parts of Minnesota are underwater, most don't have the insurance to cover the high costs of the high water.

Of the 2 million households in the state, just over 6,700 have policies through the National Flood Insurance Program managed by FEMA — the main provider of flood insurance in the U.S. — a spokesperson for the Minnesota Department of Commerce said. That represents a 35% decrease in policyholders from three years ago.

An additional 800 have insurance through private plans.

Aaron Cocking, president and CEO of the Insurance Federation of Minnesota, said people are often shocked to learn their homeowners' insurance doesn't cover flooding.

"As we look across the devastation that we're seeing in the state right now, this is a wake-up call for all of us," he said.

Last year, the commerce department in a news release said Minnesota ranked last in the country for flood insurance adoption with less than 1% of homes having coverage; Louisiana ranked first at 25%.

But floods can have wide-ranging impacts on communities. On average, the agency says, 40% of claims to the National Flood Insurance Program happen outside of high-risk areas. Three years ago, the average flood insurance claim payment was more than $44,000 while the premium was $912.

Cocking notes that while the premium may seem high on top of other costly insurance bills, it is a worthwhile investment in the long run. State experts say Minnesota has experienced more damaging rains due to climate change.

With NFIP plans, homeowners can choose the scope of their coverage, but it maxes out at $250,000 for structural damage and $100,000 for personal belongings. Policies are not effective until 30 days from purchase, with some exceptions.

To see a list of providers in Minnesota, click here.