Flood Insurance
Most standard home, landlord, or business insurance policies do not cover flood damage. Flood insurance must be purchased separately and is often required if your property is in a high-risk flood zone. Coverage is available through FEMA (the National Flood Insurance Program) and private insurers, each with different benefits.
Whether required by your mortgage lender or simply a smart precaution, flood insurance can protect your property and belongings against devastating losses.
What is covered by flood insurance companies?
A flood is defined as water covering two or more acres or affecting two or more properties that is normally dry land. This includes overflowing rivers, heavy rain accumulation, or tidal surges. Water seepage or backups from a drain or sump pump are not considered floods and require separate endorsements.
Is flood damage covered by my homeowners’ or commercial policy?
Standard home and business insurance policies do not typically cover flood damage. You need a separate flood insurance policy to be covered.
How do I know if I’m required to carry flood insurance?
If your property is in a high-risk zone – FEMA zones A or V – your mortgage lender will require flood insurance. You can check your zone at fema.gov/flood-maps, or your insurance agent can look it up for you.
Should I consider flood insurance if I’m not in a flood zone?
Yes, many recent flood claims have come from properties outside high-risk zones. Damage can still occur from intense rain, flash floods, or nearby drainage overflow, even in low-risk “X” zones.
Who provides flood insurance?
Flood insurance is available through FEMA/NFIP, which is government-backed with standard rates and limited options, and private insurers, who may offer better pricing or higher limits but can deny coverage based on risk.
How much does FEMA flood insurance cover?
For residential properties:
Up to $250,000 for building
Up to $100,000 for contents
Private carriers can offer higher limits and additional features.
Does flood insurance cover temporary housing or hotel costs?
FEMA policies do not cover relocation or living expenses. Some private flood policies may offer limited coverage for temporary housing.
Is flood damage to my automobile covered?
Yes, but not by flood insurance. It is covered under the comprehensive portion of your auto insurance.
I rent my home. Should I purchase flood insurance?
Yes. If you are a tenant, the owner’s policy won’t cover your belongings. Renters can purchase a contents-only flood policy to protect their personal items.