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Key points

  • 90% of natural disasters in the United States involve flooding.
  • A standard home insurance policy won’t cover flood damage.
  • You can buy flood insurance through the National Flood Insurance Program (NFIP) or from a private insurance company.
  • The NFIP only covers up to $250,000 in building damages, whereas a private policy may provide more coverage. 

Ninety-nine percent of United States counties were impacted by a flood between 1996 and 2019, according to the Federal Emergency Management Agency (FEMA). A standard homeowners insurance policy does not cover flood damage, and without flood insurance you could be hit hard by out-of-pocket expenses. 

The following information can help you decide if flood insurance is right for you and how much you might expect to pay for coverage.

What is flood insurance?

Flood insurance, purchased separately from your homeowners insurance policy, covers your house and belongings for damage caused by torrential rains, hurricane-related flooding, mudflow, inland flooding and flash floods. 

Most homeowners who purchase flood insurance buy it through the National Flood Insurance Program (NFIP), which is backed by FEMA, but you may also be able to buy a policy in the private flood insurance market. 

What does flood insurance cover?

Through the NFIP, there are two types of flood insurance: building coverage (for your home) and contents coverage (for your personal items). You can purchase one or both types of coverage, depending on your needs.

Building coverage, also known as dwelling coverage, can help with the cost to rebuild or repair several parts of your home, including:

  • The structure of your home, including foundation and walls.
  • Detached garages.
  • Heating and cooling systems, such as furnaces, air conditioners and water heaters.
  • Electrical or plumbing systems.
  • Permanently installed carpeting. 
  • Permanently installed cabinets, paneling and wallboards.
  • Cooking stoves, refrigerators and built-in appliances. 
  • Well-water pumps and tanks, solar energy equipment and fuel tanks.

Contents coverage will protect the following:

  • Furniture.
  • Clothing.
  • Electronics.
  • Washers, dryers, portable air conditioners and other appliances.
  • Valuables such as jewelry and artwork (up to $2,500).
  • Carpets and rugs.
  • Oher personal belongings. 

What isn’t covered by flood insurance? 

Damage not covered by NFIP flood insurance includes:

  • Damage caused by pipe bursts (your homeowner’s insurance policy may cover broken pipes).
  • Property outside of your house’s base foundation, including decks, patios and pools.
  • Mold and mildew that could have been avoided.
  • Living and/or lodging expenses if your house is uninhabitable during repair.
  • Vehicles damaged by flooding (comprehensive car insurance typically covers this).

Who needs flood insurance? 

If you live in an area that is considered high-risk for flooding, you should purchase flood insurance. This type of coverage is often required if you:

  • Have a mortgage. Lenders usually require flood insurance for properties in flood zones. Additionally, people living in Special Flood Hazard Areas (SFHA) with a government-backed mortgage are required to purchase flood insurance. Even if you live outside of a high-risk area, your lender may still require you to have flood insurance.  
  • Received disaster assistance. If you received a FEMA grant or loan-interest loan from the Small Business Administration as a result of previous flooding, you need to purchase flood insurance if you want to be eligible for emergency assistance in the future. 

Even if you aren’t required to purchase flood insurance or live in a location that isn’t currently considered high risk, you may still want to purchase coverage. More than 40% of NFIP claims filed from 2014 to 2018 did not occur in a high risk area. Even one inch of water can require $25,000 worth of repairs to a home.

While high-risk areas have a one-in-four chance of flooding during a 30-year-mortgage, low- to moderate-risk communities are also susceptible to flooding due to poor infrastructure, broken water mains, snow melt, rain and more. 

Flood risks change over time along with natural variations in climate and landscape. The FEMA Flood Map Service Center and your local government resources can help you determine if flood insurance is a wise investment for you. 

How much is flood insurance?

The average annual cost of flood insurance through the NFIP is $995, according to a survey of NFIP rates across the nation. 

How much you pay for coverage will depend on the following:

  • Location of and flooding risk to your property.
  • Composition and layout of your home, including building materials, number of floors and any elevated machinery, such as a central air conditioning unit or hot water heater.
  • Type and use of your property. 
  • Type of policy you purchase (building only or building and contents).
  • The amount of coverage you purchase.
  • The deductible you select.
  • Whether you purchase coverage from NFIP or a private insurer.

Average annual cost of NFIP flood insurance by state

StateAnnual costLEARN MORE
Alabama$732Compare RatesCompare rates offered by participating partners
Alaska$947Compare RatesCompare rates offered by participating partners
Arizona$767Compare RatesCompare rates offered by participating partners
Arkansas$964Compare RatesCompare rates offered by participating partners
California$904Compare RatesCompare rates offered by participating partners
Colorado$997Compare RatesCompare rates offered by participating partners
Connecticut$1,498Compare RatesCompare rates offered by participating partners
Delaware$754Compare RatesCompare rates offered by participating partners
Florida$624Compare RatesCompare rates offered by participating partners
Georgia$732Compare RatesCompare rates offered by participating partners
Hawaii$680Compare RatesCompare rates offered by participating partners
Idaho$809Compare RatesCompare rates offered by participating partners
Illinois$1,124Compare RatesCompare rates offered by participating partners
Indiana$1,159Compare RatesCompare rates offered by participating partners
Iowa$1,206Compare RatesCompare rates offered by participating partners
Kansas$1,051Compare RatesCompare rates offered by participating partners
Kentucky$1,176Compare RatesCompare rates offered by participating partners
Louisiana$747Compare RatesCompare rates offered by participating partners
Maine$1,128Compare RatesCompare rates offered by participating partners
Maryland$629Compare RatesCompare rates offered by participating partners
Massachusetts$1,308Compare RatesCompare rates offered by participating partners
Michigan$1,074Compare RatesCompare rates offered by participating partners
Minnesota$996Compare RatesCompare rates offered by participating partners
Mississippi$841Compare RatesCompare rates offered by participating partners
Missouri$1,237Compare RatesCompare rates offered by participating partners
Montana$889Compare RatesCompare rates offered by participating partners
Nebraska$1,077Compare RatesCompare rates offered by participating partners
Nevada$799Compare RatesCompare rates offered by participating partners
New Hampshire$1,094Compare RatesCompare rates offered by participating partners
New Jersey$960Compare RatesCompare rates offered by participating partners
New Mexico$966Compare RatesCompare rates offered by participating partners
New York$1,273Compare RatesCompare rates offered by participating partners
North Carolina$751Compare RatesCompare rates offered by participating partners
North Dakota$830Compare RatesCompare rates offered by participating partners
Ohio$1,226Compare RatesCompare rates offered by participating partners
Oklahoma$991Compare RatesCompare rates offered by participating partners
Oregon$968Compare RatesCompare rates offered by participating partners
Pennsylvania$1,390Compare RatesCompare rates offered by participating partners
Rhode Island$1,452Compare RatesCompare rates offered by participating partners
South Carolina$630Compare RatesCompare rates offered by participating partners
South Dakota$1,109Compare RatesCompare rates offered by participating partners
Tennessee$986Compare RatesCompare rates offered by participating partners
Texas$669Compare RatesCompare rates offered by participating partners
Utah$733Compare RatesCompare rates offered by participating partners
Virginia$805Compare RatesCompare rates offered by participating partners
Vermont$1,610Compare RatesCompare rates offered by participating partners
Washington$991Compare RatesCompare rates offered by participating partners
West Virginia$1,337Compare RatesCompare rates offered by participating partners
Wisconsin$1,071Compare RatesCompare rates offered by participating partners
Wyoming$1,082Compare RatesCompare rates offered by participating partners
AVERAGE$995Compare RatesCompare rates offered by participating partners

How to buy flood Insurance

Homeowners can buy flood insurance through the NFIP or from a private insurer. 

National Flood Insurance Program (NFIP)

The NFIP is managed by FEMA, an official arm of the United States government that works with more than 50 private insurance companies to provide flood protection nationwide. 

NFIP offers flood insurance with both building and contents coverage for home and business owners, as well as contents coverage for renters. Homeowners can purchase up to $250,000 in building coverage and both homeowners and renters can purchase up to $100,000 in contents coverage. 

To purchase a policy through the NFIP, you must live in one of the 23,000 U.S. communities that participate in the federal program. 

Federal flood insurance policies written by insurance companies that participate in the Write Your Own (WYO) program. A contractual agreement between insurance companies and FEMA, the WYO program allows insurance companies to write and service federal flood insurance policies under their own name, while still being underwritten by the NFIP itself. 

The easiest way to purchase NFIP flood insurance is by calling your existing insurance provider. If you don’t have an insurance agent, you can locate a company that sells flood insurance at FloodSmart.gov or by calling the NFIP directly at 877-336-2627. 

NFIP policies have a duration of one year and typically include a 30-day waiting period before the coverage goes into effect. As such, it’s important you purchase coverage well before an anticipated storm. 

Private flood insurance 

Private flood insurance is becoming increasingly popular as more companies enter the market and gain access to sophisticated models to predict risk, according to the Insurance Information Institute. 

One of the primary reasons homeowners may choose private flood insurance is due to higher policy limits. The NFIP only provides up to $250,000 in building coverage and $100,000 in contents coverage. 

Private companies can offer coverage that extend past the NFIP caps, with some companies offering up to $5 million in building coverage and $1 million for personal belongings. 

Private flood insurance policies may also have shorter waiting periods than NFIP coverage and cover loss of use expenses, like for temporary lodging or restaurant meals while your home is being rebuilt after a flood. Policy features vary, however, so always check with a potential insurance provider before purchasing coverage. 

A private flood insurance policy can act as supplemental insurance to bridge a coverage gap or it can act as a standalone policy. However, keep in mind that private insurance companies can decline your request for coverage or cancel your policy if the property is considered too risky by the insurer. 

NFIP vs. private flood insurance

NFIPPRIVATE FLOOD INSURANCE
Can only purchase up to $250,000 in building coverage and $100,000 in contents coverage
Typically offers coverage with higher building and contents limits
Backed by the federal government
Backed by the insurer
30-day waiting period
Shorter waiting period
Does not cover loss of use/lodging
Typically covers loss of use/lodging

Tip: When deciding if you need flood insurance, make sure to go over every detail of your standard homeowners insurance and NFIP flood insurance. There are many limitations around what’s covered and not covered.

Flood insurance FAQs

No, a standard homeowners insurance policy does not cover flooding. In order to cover your house and belongings for damage from floodwaters, you must purchase flood insurance through the NFIP or from a private insurance agency.

Flood insurance may be required by your lender if you have a mortgage. Prior to 2019, homeowners with a federally backed mortgage were required to purchase insurance through the NFIP. Under the Biggert-Waters Flood Insurance Reform Act of 2012, lenders are now required to accept private flood insurance. 

You can shop around for flood insurance, but there is no need to compare rates within the NFIP. Your rate will stay the same no matter what FEMA-contracted agency you use. 

If your home is valued at more than $250,000, you may want to purchase additional flood insurance from the private sector. When shopping around in the private market, make sure the policies you are comparing are comparable. Keep in mind the deductible you want, the building and contents coverage you need, any waiting period and whether or not the policy covers loss of use.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Leslie is a freelance finance and lifestyle writer from Chicago who’s been writing professionally since 2010. Prior to her freelance career, Leslie was a reporter for the Las Vegas Weekly where she regularly interviewed some of the world's top entertainers and entrepreneurs. Leslie has a passion for making the intimidating world of finance accessible to everyone, especially people of color and the LGBTQ community. Having started her own personal finance journey in her early 30s, she believes it’s never too late to start investing in yourself.

Kara McGinley

BLUEPRINT

Kara McGinley is deputy editor of insurance at USA TODAY Blueprint and a licensed home insurance expert. Previously, she was a senior editor at Policygenius, where she specialized in homeowners and renters insurance. Her work and insights have been featured in MSN, Lifehacker, Kiplinger, PropertyCasualty360 and more.