Does homeowners insurance cover flood damage?

While standard homeowners insurance covers a wide variety of weather-related and natural disasters, such as fire, lightning, windstorms, and hail, it doesn’t cover flood damage. And that gap can be costly — floods are one of the most common and expensive disasters homeowners face, often leaving behind tens of thousands of dollars in repairs. 

That’s why having flood insurance matters. It gives you peace of mind knowing that if rising waters ever reach your home, you won’t be left footing the bill on your own.

You can buy flood insurance separately through the National Flood Insurance Program (NFIP) or a private insurance company. 

Most standard policies only cover water damage if it’s from a sudden accident inside your home — like a burst pipe or an overflowing appliance — or from something else that’s already covered, like wind-driven rain. So even if a storm feels sudden, the flooding it causes usually isn’t covered. On the other hand, if that same storm tears off part of your roof and rainwater leaks in, that damage may still be covered.

What counts as flood damage?

Flood damage refers to water entering your home from outside sources, not from problems within your plumbing or appliances. Flood insurance typically covers both your home’s structure and personal belongings when they’re damaged by events such as:

• Flash floods from heavy rainfall
• Storm surges and coastal flooding
• Flooding from melting snow or ice
• Overflowing rivers, lakes, or streams
• The sudden breaking of a dam or levee

Here’s the key distinction: flood damage comes from water outside moving into your home, while homeowners insurance usually only kicks in for water that starts inside — like a burst pipe, a leaky appliance, or rain that gets in through a damaged roof. If the water is rising from the ground up, that’s a flood, and you’ll need flood insurance to be covered.

When do you need flood insurance?

Flood insurance isn’t legally required for every homeowner, but it can become a must depending on where your property is located and how it’s financed. If you mortgage a home in a high-risk flood zone — as determined by FEMA’s flood maps — your lender will almost always require you to carry flood insurance. Without it, you won’t be able to close on the loan.

Even if you’re outside of a designated high-risk zone, some lenders may still require flood insurance as a condition of financing, especially if your home is near rivers, lakes, or coastal areas. And if you own your home outright, you’re not required to buy it at all, but going without coverage means taking on the full financial risk if flooding occurs.

If you own your home outright, you won’t be forced to buy coverage, but in many cases, you should. Without flood insurance, you’re fully responsible for the costs of repairs and rebuilding after a flood, which can easily run into the tens of thousands. It makes sense to get flood insurance if:

• Your home is near rivers, lakes, or the coast, where rising water could reach your property.
• You live in an area with a history of flooding, hurricanes, or heavy rainfall.
• Your basement or lower level is at risk of water intrusion during storms.
• You want to protect your savings and financial stability from unexpected disaster costs.

Owning your home outright gives you flexibility, but it also means the financial risk is entirely yours. Without flood insurance, you’re taking on 100% of the financial risk if a flood damages your home. Flood insurance helps protect that investment so you don’t have to rebuild alone after a major storm.

What does flood insurance cover?

Flood insurance covers damage to your home’s structure, attached and detached structures, and built-in appliances and fixtures, such as flooring and HVAC units. Personal property is also covered, although high-value items like jewelry have limits in coverage.

Certain perils aren’t covered by flood insurance, such as damage from sewer backups or any mold or insect infestations that develop as a result of a flood. Flood insurance doesn’t cover everything — for example, your car isn’t included, and outdoor features like pools or patios usually aren’t covered either.

“Coverage tops out at $250,000 for the structure and $100,000 for contents [for NFIP policies], a level that might fail the requirements of some homeowners,” says Jordan Blake, Director of Communications and Operations, Shoreline Public Adjusters. 

To fill those gaps, some homeowners look to the private market.

“Private, standalone flood insurance is a less restrictive choice,” says Blake. “These policies could provide more coverage, they offer things like higher limits, cover loss of use, belongings stored in basements, and may offer quicker claims processing.” 

The flipside is that, unlike NFIP policies, which are guaranteed-issue, private flood insurance policies “can be denied or priced higher based on the home’s location and history of flooding,” Blake says

How much does flood insurance cost?

According to data from FEMA, which manages NFIP, more than a third of NFIP policies cost up to $1,000, and about 32% cost between $1,000 and $2,000 per year. FEMA uses a system called Risk Rating 2.0 to assess the likelihood of a flood occurring in your area and periodically adjusts NFIP rates. 

The cost of flood insurance depends on where you live — the greater the flood risk, the more you’ll likely have to pay — and how much coverage you opt for. If you don’t live in a community with NFIP coverage, your only option may be to purchase private flood insurance coverage, which could affect your premiums.

“It really comes down to your risk tolerance, your home’s flood zone and how much you can afford,” says Blake. “If you’re in a federally designated high-risk flood zone and have a mortgage, you probably have to carry NFIP coverage.” 

It’s still worth shopping around, since private flood insurance can sometimes offer better coverage or lower costs than NFIP. NFIP policies are the most common and widely available, but they aren’t always the right fit for every homeowner. Their coverage limits can feel restrictive, and the premiums don’t always reflect your property’s specific risk. For some homeowners, a private flood policy can be a solid alternative.

“Many people are shocked to discover that private flood insurance can be priced competitively, especially for homeowners in moderate-risk regions,” Blake said.

How to buy flood insurance

Before you buy flood insurance, check to see if your community participates in the NFIP program. For many homeowners, NFIP is the most straightforward way to get coverage — it’s widely available, backed by the federal government, and guarantees you can get a policy regardless of your property’s risk level.

That said, NFIP isn’t the only option. Some homeowners may prefer private flood insurance, which can sometimes offer higher coverage limits, additional benefits (like coverage for loss of use or finished basements), or even competitive pricing depending on your location. It’s a good idea to compare both if you have access to private options in your area.

To get started, reach out to insurance companies that sell flood insurance. Many insurers offer free quotes, and the same company that handles your homeowners policy may also provide flood coverage as a separate policy, which can make paying and managing your insurance bills more convenient.

Steps to take after your home floods

If your home floods, acting quickly can make a big difference — both for your safety and for your insurance claim. Here are the key steps to take:

• Notify your insurer right away. Contact your insurance company to start the claims process. Let them know your home has been flooded and that you’ll be filing a claim.
• Document everything. Take photos and videos of structural damage and damaged belongings before moving or throwing anything out. If you have receipts or records for big-ticket items, gather those too — they’ll help prove value.
• Prepare for the adjuster. Your insurance company will assign an adjuster to inspect the damage. Be ready to coordinate a time for their visit and keep your documentation organized to make the process smoother.
• Remove damaged items safely. Once you’ve captured clear evidence, you can start discarding items that can’t be salvaged. Leaving them behind could lead to mold, which many policies won’t cover.

The adjuster’s job is to confirm the extent of both structural and personal property damage, and your documentation will play a big role in making sure your claim reflects the true loss.

The cost of going without flood insurance

If you don’t have flood insurance, any damage to your home or belongings falls entirely on you. Repairing and replacing after a flood can easily cost tens of thousands of dollars. In fact, FEMA reports that the average flood insurance claim payout was $68,000 between 2016 and 2021 — money you’d otherwise have to come up with out of pocket. If that number sounds unmanageable, it’s a clear sign that flood insurance could be a smart investment.

And the risks are only growing. Hurricanes, windstorms, and other severe weather events are creating more catastrophic flooding than ever. From 2020 to 2024 alone, NOAA recorded 115 weather and climate disasters in the U.S. that each caused more than $1 billion in damage. Without coverage, homeowners are left increasingly vulnerable to bearing these losses themselves.

What types of water damage are covered by homeowners insurance?

Standard homeowners insurance usually covers water damage that happens suddenly or accidentally — not gradually over time — and only if it’s caused by a covered peril other than flooding.

Examples include water damage from a burst pipe, a washing machine overflow, or heavy wind-driven rain. Policies may also cover damage if the weight of ice or snow causes your roof to collapse, or if mold develops as a direct result of a covered peril and is beyond your control.

A simple way to think about it, according to the Insurance Information Institute, is this: water that comes from the top down (like rain or a burst pipe) is often covered, while water that comes from the ground up (like flooding or sewer backups) usually isn’t.

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