Flood Insurance: What Your Home Policy Doesn't Cover

Your standard homeowners insurance policy does not cover flood damage. Not partial coverage. Not limited coverage. Zero coverage.

Why Standard Policies Exclude Floods

Floods are catastrophic, localized events affecting many policyholders simultaneously. This concentrated risk makes floods essentially uninsurable through standard policies at affordable rates. That's why the federal government created the National Flood Insurance Program (NFIP) in 1968.

"I Don't Live in a Flood Zone" — You're Still at Risk

FEMA estimates over 25% of all flood claims come from outside high-risk flood zones. Poor drainage, nearby construction, climate change, and aging infrastructure all increase flood risk. Just one inch of floodwater can cause over $25,000 in damage.

How Flood Insurance Works

NFIP coverage: Building coverage up to $250,000 and contents coverage up to $100,000, purchased separately.

Private flood insurance: Can offer higher limits, replacement cost coverage (NFIP pays actual cash value for contents), additional living expenses coverage, and potentially lower rates for lower-risk properties.

What Flood Insurance Costs

Low-risk areas: $400-$700/year. Moderate-risk: $700-$1,500/year. High-risk zones: $1,500-$5,000+/year.

The 30-Day Waiting Period

NFIP policies have a 30-day waiting period before coverage takes effect. You cannot buy flood insurance when a storm is approaching and expect immediate coverage.

The Bottom Line

Flood insurance is one of those coverages that feels unnecessary until the water starts rising. Truvo can help you compare flood insurance options alongside your homeowners coverage.