Many homeowners wrongly assume that their standard insurance policy will protect them from flood damage-until it’s too late. The reality is that flood insurance is a separate policy, and without it, even a few inches of water can lead to tens of thousands of dollars in repair costs.
If you’re wondering what flood insurance coverage really includes and whether you need it, this guide will explain it all in simple terms.
What Is Flood Insurance?
Flood insurance is a type of property insurance designed to cover losses caused by flooding. It’s most commonly purchased through the National Flood Insurance Program (NFIP), which is managed by FEMA, though private companies also offer plans.
Flooding can happen due to:
- Heavy rain
- Hurricanes and tropical storms
- Overflowing rivers or lakes
- Rapid snowmelt
- Blocked storm drains or broken levees
Why Standard Homeowners Insurance Doesn’t Cover Flooding
It may be surprising, but standard homeowners or renters insurance policies do not cover flood damage. This includes water entering your home from rising water levels outside, such as during a storm or overflowing body of water.
If you live in a flood-prone area, your mortgage lender may require you to carry flood insurance. But even if you’re in a lower-risk zone, floods can happen anywhere-and often do.
What Does Flood Insurance Cover?
Flood insurance typically includes two types of coverage: one for your building (structure) and another for your personal property. Here’s what each includes:
Building Coverage
- Foundation walls and staircases
- Electrical and plumbing systems
- HVAC systems (furnace, water heater, air conditioner)
- Kitchen appliances (refrigerators, stoves, built-in dishwashers)
- Permanently installed carpeting and cabinets
- Detached garages (up to a certain percentage of coverage)
Contents Coverage
- Personal belongings (clothing, furniture, electronics)
- Washers and dryers
- Portable air conditioners and microwaves
- Curtains, rugs, and carpets not covered under building coverage
- Valuable items (limited to $2,500)
Both types of coverage have limits, so it’s important to understand how much protection you’re buying. Under NFIP, the maximum coverage is $250,000 for buildings and $100,000 for contents.
What’s Not Covered by Flood Insurance?
Flood insurance has its limitations. It does not cover:
- Damage caused by moisture, mildew, or mold that could have been prevented
- Property and belongings outside the home (e.g., landscaping, decks, fences)
- Temporary living expenses (like hotel stays)
- Cars or vehicles (covered by auto insurance if you have comprehensive coverage)
- Business interruption losses
How Much Does Flood Insurance Cost?
Flood insurance premiums vary depending on:
- Your home’s location and flood risk zone
- Age and structure of your home
- Elevation and foundation type
- Amount and type of coverage
Average NFIP policies cost around $700-$1,200 per year, but this can be higher in high-risk areas. Private insurers may offer higher coverage limits or lower prices depending on your situation.
How to Get Flood Insurance?
Here’s how to get started:
- Check your flood zone using FEMA’s online map tool or consult your insurance agent.
- Request quotes from both the NFIP and private insurance companies.
- Choose your coverage amount for both building and contents.
- Purchase your policy through an authorized insurance provider.
Note: There is often a 30-day waiting period before NFIP flood insurance becomes active. Don’t wait until a storm is approaching to buy coverage.
Private vs. NFIP Flood Insurance
Some private insurers offer flood insurance with:
- Higher coverage limits
- Shorter waiting periods
- Optional temporary housing coverage
Private insurance may be worth considering if your home is high-value or you want more flexible options.
Conclusion: Don’t Wait Until It’s Too Late
Floods can destroy a lifetime of belongings in minutes-and flood insurance is often the only way to recover financially. Whether you live near water or not, it’s worth reviewing your flood risk and making an informed choice. A small investment now can save you thousands later.