Floods don’t just happen near the coast. In fact, flooding is the most common and costly natural disaster in the U.S., and yet, most homeowners and renters are surprised to learn that standard insurance policies do not cover flood damage.
Whether you own your home or rent, understanding your flood risk and your insurance options is key to protecting your property and peace of mind.
Why Flood Insurance Matters
A few quick facts:
- Just 1 inch of water in your home can cause up to $25,000 in damage
- Only 27% of homeowners with home insurance also carry flood insurance*
- Floods can happen anywhere, not just in coastal or hurricane-prone areas
From hurricanes and winter storms to snowmelt and new construction that alters natural drainage, there are countless ways floodwaters can reach your front door.
Doesn’t My Homeowners or Renters Insurance Cover Flooding?
No. Flood damage is almost always excluded from standard homeowners and renters policies.
To be covered, you’ll need a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurer.
What Is the National Flood Insurance Program (NFIP)?
The NFIP is a federally backed program that offers flood insurance to homeowners, renters, and business owners in participating communities. Currently, more than 23,000 US communities participate.
If your city or county is part of the NFIP, you’re eligible to purchase flood coverage, even if you're not in a high-risk flood zone.
Do I Need Flood Insurance?
If you live in a Special Flood Hazard Area (SFHA) or another high-risk flood zone and have a federally backed mortgage, your lender will likely require flood insurance.
But even outside of high-risk zones, it’s still smart to consider purchasing flood insurance. According to FEMA, homes in moderate-to-low-risk areas account for more than 20% of flood insurance claims.
Did You Know? Homes in high-risk areas are more than twice as likely to be damaged by a flood than by a fire.
Don't wait to get flood insurance! There’s a 30-day waiting period before your flood policies take effect. That means you’ll need to plan ahead. Don’t wait for a storm warning to start the process.
What if I need more flood insurance?
Basic NFIP policies have limits, but private flood insurance can offer additional protection, especially for:
- High-value homes
- Properties with unique or upgraded features
- Homes located in areas not covered by the NFIP
This is often referred to as excess flood insurance and can be tailored to fit your needs more precisely.
Ready to Explore Your Options?
Flood insurance can seem complicated, but we’re here to help make it easy. Whether you’re buying a new home, reviewing your current policy, or want to understand your risk better, your Leavitt Group Texas Select advisor can help you find the right flood protection!
Resources to Learn More:
- Floodsmart.gov – Official site of the NFIP
- FEMA.gov/flood-insurance – Coverage details and risk maps
*Source: 2020 Triple-I Consumer Poll
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