How Flood Insurance Could Help Keep Your Head Above Water

Does Homeowners Insurance Cover Flood Damage?

We buy homeowners’ insurance to protect one of our most valuable assets. However, if you believe your home insurance policy will cover your home from flood damage, think again. Most homeowners’ insurance policies DO NOT cover flood damage. To protect your home against flooding, you’ll need to buy a separate flood insurance policy. Unless you purchase this coverage, your home is NOT protected against flooding. Here’s everything you need to know about flood insurance, including what it covers, what qualifies as flooding, and how much it costs.

Homeowners Insurance: Water Damage Coverage

I want to be very clear at the start. Flood damage isn’t covered by home insurance. However, other types of “water damage” may be.

Water damage is different than flood damage. To put it simply, flood damage occurs when water enters your home from the ground up, while water damage typically results from issues above the ground, like a leaky roof or a burst pipe.

Standard homeowners insurance usually covers water damage that happens suddenly or accidentally. Covered events include major broken plumbing, a malfunctioning dishwasher or washing machine, heavy “wind-driven” rain, a collapsed roof (from the weight of ice or snow), or mold issues that occur as a “direct result of a covered peril” that is considered beyond the homeowner’s control. Renters’ insurance also does not typically cover damage to personal belongings caused by flooding.

Check your insurance now to confirm what is covered under your policy. You don’t want to wait until your home is flooded to find out that you’re not covered for flood damage.

What Is Flood Insurance?

Flood insurance is a separate type of policy from your homeowners’ insurance. A “flood” is defined as rising water from the outside that starts at the ground and moves upwards and into your home from natural disasters like hurricanes and heavy rainstorms.

Many homeowners assume that they only need flood insurance if they’re in a flood zone. That isn’t true. Flood insurance can cover problems as a result of:

:: Flash floods
:: Storm surges
:: Overflowing rivers, lakes, or streams
:: Sudden breaking of a dam or levee
:: Flooding from melting snow or ice
:: Heavy rain pooling around your foundation
:: Surface water that enters your home

What Counts as Flood Damage?

Flood insurance typically covers the house structure and any personal contents damaged by flooding and related events. Flood insurance is explained in two parts: Dwelling and Contents.

Dwelling Coverage

Dwelling coverage as specified within a flood insurance policy pays to repair or rebuild the house after flood-related damage.

Dwelling coverage includes:

:: The actual home’s structure
:: Additional attached and detached structures
:: Electrical and plumbing systems
:: Built-in appliances and fixtures
:: Solar energy equipment
:: Carpeting and flooring
:: Window treatments

Contents Coverage

Contents coverage within a flood insurance policy covers your personal belongings and pays to repair or replace damaged items.

Contents coverage includes:

:: Free-standing appliances
:: Clothing
:: Furniture
:: Electronic equipment
:: Valuables (specified coverage limit)

What Doesn’t Flood Insurance Cover?

Your homeowner’s insurance covers water damage as a result of water issues that “begin inside the home,” like a burst pipe, a malfunctioning appliance, or rainwater that seeps inside through a damaged roof.

But be aware that flood insurance does not cover all types of water damage.

Flood insurance does not cover:

:: Damage from irrigation or sewer backups
:: Damage from landslides
:: Damage from earthquakes
:: Mold and mildew that could have been avoided
:: Insect infestations that develop as a result of a flood
:: Vehicle damage from flooding (covered under auto insurance)
:: Basement damage
:: Septic systems (unless specified)
:: Pools

:: Decks
:: Patios
:: Landscaping
:: Driveways
:: Outdoor equipment
:: Financial losses due to business interruption
:: Business equipment, inventory, or supplies
:: Temporary housing during flood repairs

Do You Need Flood Insurance?

Thinking about how your home can be at risk, you may be tempted to purchase flood insurance right away. Before you spend your hard-earned money on a policy, keep in mind that flood insurance is not legally required for every homeowner. If your home is in a FEMA high-risk flood zone, your mortgage lender will likely require that you buy flood insurance.

Coastal homes, homes near bodies of water, and homes in low-lying areas may be considered high risk for flooding. Rest assured, you’ll know whether your home is in a high-risk flood zone because your mortgage lender will always require you to carry flood insurance. In fact, if your home is in a high-risk flood zone, you won’t be able to close on the purchase of your home until you show that you have bought flood insurance.

What Are FEMA Flood Zones?

FEMA flood zones:

:: A – High Risk
:: AE – High Risk
:: AO – High Risk
:: AH – High Risk
:: V – High Risk
:: VE – High Risk
:: X – Moderate to Low
:: D – Possible risk, but no analysis conducted

If you own your home (no mortgage), you’re not required to buy flood insurance. However, if your home is within one of these zones, you’ll be taking a BIG RISK. Without a policy, you’ll be solely responsible for paying the high costs of repairs and rebuilding after a flood. If you’re in the market to buy a home, you can check to see if a particular home is located in a flood zone by checking FEMA’s Flood Map Service Center and entering the home’s address.

Homes Outside of High-Risk Areas May Still Be at Risk of Flooding

So, what if you live in a low or moderately low flood zone risk because there is a nearby lake, river, or coastal area? Even homes not considered a high-risk flood zone can still be at risk of flooding.

During a hurricane a few years back, we were shocked to witness the pond water located beyond our fence line rise until the water started infiltrating into our backyard. We did not have flood insurance, but luckily the water receded without damage. It was a scary sight and an eye-opening experience.

Where to Get Flood Insurance

You can get flood insurance from FEMA’s National Flood Insurance Program (NFIP) or select a private carrier. The majority of homeowners buy flood insurance through NFIP, which provides set coverage limits.

IMPORTANT NOTE: You cannot wait until a natural disaster is forecasted to immediately secure flood insurance. Flood insurance through the NFIP has a 30-day waiting period before coverage goes into effect, so you won’t be covered if you wait to buy a policy until a storm is upon you. Buy your policy sooner rather than later so you can sleep better at night knowing that your most valuable possession is covered.

Before you buy flood insurance, check to see if your community participates in the NFIP program. If you’ve incurred previous flooding damage or live in a high-risk area, you’ll want a FEMA policy because the NFIP is required to take all applicants who live in participating communities. Private insurers can be picky about who they sell to, and they may decline your application if they feel the risk of a claim is too high.

There can be benefits to purchasing private flood insurance over the NFIP. Private insurers may offer higher coverage limits or and their premiums may be more competitively priced , depending on where you live. Do your homework and get multiple free quotes to compare both private and NFIP flooding insurance options.

How Much Flood Insurance Should You Get?

To determine how much flood insurance you need, think about how much it will cost to rebuild your home and replace your belongings. Do not include the value of your land in the rebuild estimate. Talk with a realtor or a contractor to get rebuild estimates, and take inventory of your belongings to figure out how much it would cost to replace everything.

FEMA policy limits are $250,000 for the dwelling and $100,000 for contents. If your home costs more than $250,000 to rebuild and you’ll need more than $100,000 in contents coverage, you’ll want to buy additional coverage from a private flood insurance company.

Also note that FEMA policies areavailable with lower limits. If your coverage needs are lower than the maximum limits, you can save money by purchasing a smaller policy.

How Much Does Flood Insurance Cost?

The cost of flood insurance depends on where you live. Obviously, the greater the flood risk, the higher the cost. While the cost of flood insurance can deter homeowners who aren’t required to have it, the average price of NFIP flood insurance is $888 per year. Rates vary by location, and could be as low as $65 per month, or as high as $165 per month in high-risk zones

Keep in mind, a flood insurance policy may be considered a small price to pay to receive immediate financial assistance after a major flood, eliminating the need for you to take an SBA loan (small business loan) or wipe out your savings to rebuild. No flood insurance means that you’re responsible for any flood damage to your home and belongings. If that thought makes you uncomfortable, flood insurance could be a smart investment.

Flood Insurance Can Help Keep Your Head Above Water, Financially

While a standard homeowners’ insurance policy covers water damage from a sudden water issue inside your home (like a malfunctioning appliance), flood damage from the outside is not covered. You’ll need a separate flood insurance policy for additional protection of your home and personal contents.

The expression, “when in doubt, go without,” does NOT apply to flood insurance. Whether you buy flood insurance through FEMA’s National Flood Insurance Program (NFIP) or a private insurance company, the policy can give you peace of mind knowing that if rising waters unexpectedly reach your home, you won’t be responsible for paying exorbitant costs to rebuild, repair, or replace.

Don’t wait until a flood happens to find out you’re not covered. Most flood policies have a 30-day waiting period, so plan ahead and get protected before the next natural disaster starts heading your way.

FAQ

Do I need flood insurance?

If you live in a high-risk zone, as determined by FEMA, and carry a mortgage, you are required to get flood insurance. Otherwise, it is optional, but if you live in a high risk zone, it is strongly recommended.

Doesn’t my homeowner‘s insurance include flood damage?

No, regular homeowner’s insurance just covers water damage, such as burst pipes or leaky roofs. You will need to purchase separate flood insurance.

Sources

Progressive, How much is flood insurance? Accessed May 22, 2026.
FEMA, Flood Insurance. Accessed May 22, 2026.
FEMA, Cost of Flood Insurance for Single-Family Homes under NFIP’s Pricing Approach. Accessed May 22, 2026.
FEMA, Fact Sheet: Myths and Facts About Flood Insurance. Published June 11, 2019.
PolicyGenius, How much does flood insurance cost? (2024). Published May 30, 2024.