Jeffrey Wade
Flood insurance is a separate policy from homeowners insurance and is available to anyone living in one of the 22,600 participating NFIP communities. The National Flood Insurance Program (NFIP) is managed by FEMA and delivered to the public by a network of more than 50 insurance companies. Flood insurance covers losses directly caused by flooding and can help you recover financially after a flood. There are several actions you can take to reduce your flood insurance premium, such as moving utilities to a higher location so they are less likely to be damaged in a flood. This article will explore the topic of flood insurance in more detail, including how to reduce costs and what is covered.
| Characteristics | Values |
|---|---|
| Flood insurance availability | Available to anyone living in one of the 22,600 participating NFIP communities |
| Flood insurance coverage | Flood insurance covers losses directly caused by flooding and offers two types of coverage: building coverage and contents coverage |
| Cost reduction | Elevating electrical panels and water heaters, getting an elevation certificate, installing flood vents, waterproofing basements, cleaning gutters, and adding openings in crawl spaces can help reduce flood insurance costs |
| Cost increase | Living in a high-risk flood area or Special Flood Hazard Area (SFHA) can increase flood insurance costs |
| Purchase process | Flood insurance can be purchased from the FEMA-managed National Flood Insurance Program (NFIP) or through private insurance providers, with the option to buy an NFIP policy through an existing home insurance carrier |
| Waiting period | Flood insurance coverage typically takes effect 30 days after purchase, with exceptions for mortgage-related purchases, policy renewals, high-risk zone designations, and federal land wildfires |
| Discounts | FEMA's Community Rating System offers discounts for residents of participating communities that take extra steps to reduce flood risk |
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What You'll Learn
Flood insurance policy options
Flood insurance is typically a separate policy from homeowners insurance and is an important protection to have as floods can happen anywhere and cause thousands of dollars' worth of damage. The National Flood Insurance Program (NFIP) is managed by the Federal Emergency Management Agency (FEMA) and delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.
The NFIP provides flood insurance to property owners, renters, and businesses, and there are two types of coverage: building coverage and contents coverage. Building coverage includes electrical and plumbing systems, furnaces and water heaters, refrigerators, stoves and built-in appliances, permanently installed carpeting, cabinets, paneling and bookcases, window blinds, foundation walls, anchorage systems and staircases, detached garages, fuel tanks, well water tanks and pumps, and solar energy equipment. Contents coverage includes clothing, furniture, electronic equipment, washers and dryers, portable and window air conditioners, carpets installed over wood floors, and valuable items such as original artwork and furs (up to $2,500). Commercial flood insurance is also available to protect businesses' buildings, equipment, foundations, utilities, furniture, and inventory. Each type of coverage (building and contents) covers up to $500,000 in flood damage.
To purchase flood insurance, you can get a quote through the NFIP Quote Tool and then share the quote with an agent near you, call your insurance company or agent, or go to floodsmart.gov/get-insured/flood-insurance-provider. There is typically a 30-day waiting period for an NFIP policy to go into effect, except in certain circumstances, such as when coverage is mandated by a government-backed lender or when there is a community flood map change. There are also ways to reduce your flood insurance premium, such as by elevating your water heater or electrical panel, or by getting an elevation certificate.
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Reducing insurance costs
Flood insurance is a separate policy that covers buildings, contents, or both. It is important to protect your home, business, and possessions as most homeowners insurance does not cover flood damage. The National Flood Insurance Program (NFIP) is managed by FEMA and delivered by a network of more than 47 insurance companies. The NFIP provides flood insurance to property owners, renters, and businesses, aiding their recovery.
There are several ways to reduce insurance costs after flooding:
- Elevate your water heater, electrical panel, and utilities to a higher location, such as the attic or a closet, to reduce potential damage.
- Obtain an elevation certificate, which documents your building's elevation, to lower insurance costs.
- If you live in a Special Flood Hazard Area (SFHA) with flood insurance, you may receive up to $30,000 in Increased Cost of Compliance (ICC) coverage to rebuild your home to meet safety standards and local flood safety rules.
- If your building has flooded twice in 10 years, each costing 25% of its property value, you may qualify for ICC coverage of up to $15,000.
- If your community states that your home or business has major or repeated flood damage, you can file an ICC claim with your insurer to receive funding to rebuild or make necessary changes.
- If your property is in a newly designated high-risk flood zone, there is only a one-day waiting period before your flood insurance coverage takes effect.
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Buying flood insurance
Flood insurance is a separate policy from homeowners insurance and is not covered by most homeowners insurance policies. Flood insurance can cover buildings, the contents inside a building, or both. The National Flood Insurance Program (NFIP) is managed by the Federal Emergency Management Agency (FEMA) and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.
Get a Quote
Use the NFIP Quote Tool to find the flood insurance coverage that works for you. It only takes a few minutes to get a free and personalized quote using this online resource.
Purchase the Policy
Share the quote with an agent near you, or you can call your insurance company or agent. If you need help finding a provider, go to floodsmart.gov/get-insured/flood-insurance-provider or call the NFIP at (877) 336-2627.
Understand the Waiting Period
Typically, there is a 30-day waiting period for an NFIP policy to go into effect. However, there are some exceptions to this rule:
- There is no wait if you buy flood insurance while making, increasing, extending, or renewing a mortgage.
- There is no wait if you change your flood insurance coverage while renewing your policy.
- There is a one-day wait if your property is in a newly designated high-risk flood zone and you buy a policy within 12 months of the update.
- There is a one-day waiting period if a flood is caused or worsened by a wildfire on federal land, and you buy a policy within 60 days of the wildfire containment date.
Reduce Your Risk and Cost
There are ways to reduce your risk and cost. For example, you may find savings by elevating your water heater or electrical panel to make them less likely to be damaged in a flood. Getting an elevation certificate, which documents your building's elevation, can also lower the price.
Understand What is Covered
NFIP flood insurance covers direct physical flood damage to your home and your belongings. Home and business coverage, called building coverage, includes:
- Electrical and plumbing systems
- Furnaces and water heaters
- Refrigerators, stoves, and built-in appliances like dishwashers
- Permanently installed carpeting, cabinets, panelling, and bookcases
- Window blinds
- Foundation walls, anchorage systems, and staircases
- Detached garages
- Fuel tanks, well water tanks, and pumps
- Solar energy equipment
Belongings coverage, called contents coverage, includes:
- Clothing
- Furniture
- Electronic equipment
- Washer and dryer
- Portable and window air conditioners
- Carpet installed over wood floors
- Valuable items such as original artwork and furs (up to $2,500)
- Merchandise and raw materials held in storage or for sale, if you're a business owner
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What flood insurance covers
Flood insurance is a separate policy from homeowners insurance and is offered by the National Flood Insurance Program (NFIP), which is managed by FEMA. The NFIP offers flood insurance to protect your home, belongings, or business from floods. The NFIP defines flooding as "an excess of water on land that is normally dry".
NFIP flood insurance covers direct physical flood damage to your home and your belongings. Home and business coverage, also called building coverage, includes:
- Electrical and plumbing systems
- Furnaces and water heaters
- Refrigerators, stoves, and built-in appliances like dishwashers
- Permanently installed carpeting
- Permanently installed cabinets, paneling, and bookcases
- Window blinds
- Foundation walls, anchorage systems, and staircases
- Detached garages
- Fuel tanks, well water tanks, and pumps
- Solar energy equipment
Belongings coverage is called contents coverage and includes:
- Clothing
- Furniture
- Electronic equipment
- Washer and dryer
- Portable and window air conditioners
- Carpet installed over wood floors
- Valuable items such as original artwork and furs (up to $2,500)
- Merchandise and raw materials held in storage or for sale, if you’re a business owner
Flood insurance covers water damage from heavy rain, melting snow, and overflowing bodies of water. It pays to repair the structure of your home and replace damaged personal belongings. Most home insurance policies don’t cover flood damage, which can cost thousands of dollars even if there's just an inch or two of water.
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Flood insurance claims
Flood insurance is a separate policy from homeowners insurance and is available to anyone living in one of the 22,600 participating National Flood Insurance Program (NFIP) communities. The NFIP is managed by the Federal Emergency Management Agency (FEMA) and is delivered to the public by a network of more than 47 insurance companies and the NFIP Direct.
NFIP flood insurance policies cover direct physical flood damage to your home and your belongings. Home and business coverage, also called building coverage, includes:
- Electrical and plumbing systems
- Furnaces and water heaters
- Refrigerators, stoves, and built-in appliances like dishwashers
- Permanently installed carpeting
- Permanently installed cabinets, paneling, and bookcases
- Window blinds
- Foundation walls, anchorage systems, and staircases
- Detached garages
- Fuel tanks, well water tanks, and pumps
- Solar energy equipment
Belongings coverage, also called contents coverage, includes:
- Clothing
- Furniture
- Electronic equipment
- Washer and dryer
- Portable and window air conditioners
- Carpet installed over wood floors
- Valuable items such as original artwork and furs (up to $2,500)
- Merchandise and raw materials held in storage or for sale, if you’re a business owner
If you experience a flood, you can file your flood insurance claim by following these three steps:
- Notify your insurer to start the claims process: Contact your agent or insurance company to file a claim. Make sure you have information such as the date and time of the loss, a description of what happened, and any relevant police reports.
- Document the damage: Take photographs of all of the damaged property, including structural damage and standing floodwater levels. Make a list of damaged or lost items and include their date of purchase, value, and receipts, if possible.
- Work with an adjuster: An insurance adjuster will come to your property to view your flood damage and create a claim estimate. When you meet with the adjuster, ask to see their Flood Control Number card. Their card will have their picture and be dated for the current storm year. The adjuster will prepare a damage estimate for your review, so be sure to review it carefully to ensure it's accurate and complete.
It can take 4-8 weeks before a claim is finalized and paid. If your claim is denied, you can work with your insurance agent or appeal to FEMA.
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Frequently asked questions
Flood insurance policies vary, but generally, yes, insurance premiums increase after flooding.
Flood insurance covers losses directly caused by flooding. This includes damage to your home's electrical and plumbing systems, appliances, and personal belongings.
There are several ways to reduce your premium:
- Elevate items such as your water heater or electrical panel to make them less vulnerable to flood damage.
- Get an elevation certificate to document your building's elevation.
- Clean your gutters and downspouts to prevent water overflow.
- Install an opening or vent in your crawl space to reduce pressure on your walls.
Typically, flood insurance goes into effect 30 days after purchase. However, there are exceptions:
- No wait period if you buy insurance while making, increasing, extending, or renewing a mortgage.
- No wait period if you change your coverage while renewing your policy.
- One-day wait if your property is in a newly designated high-risk flood zone and you buy within 12 months of the update.
- One-day wait if a flood is caused or worsened by a wildfire on federal land and you buy within 60 days of containment.
You can purchase flood insurance through the FEMA-managed National Flood Insurance Program (NFIP) or a private insurance provider. Check with your home insurance company, as you may be able to purchase an NFIP policy through your existing carrier.
