Over 40% of flood insurance claims come from properties outside designated high-risk flood zones. Standard homeowner's insurance does NOT cover flood damage. Here's what every homeowner should know.
The Coverage Gap
Homeowner's insurance covers water damage from above (rain through a damaged roof) but NOT water from below (rising floodwater, storm surge, overflowing rivers). This distinction has devastated countless families who assumed they were covered.
NFIP vs Private Flood Insurance
- National Flood Insurance Program (NFIP): Government-backed. Max coverage $250K structure + $100K contents. Average premium: $800/year.
- Private flood insurance: Higher coverage limits, often cheaper outside high-risk zones. Companies like Neptune, Aon, and Wright Flood offer competitive rates.
Risk Rating 2.0
FEMA's new pricing model (Risk Rating 2.0) now considers individual property characteristics rather than just flood zone maps. Some premiums dropped significantly while others increased. Check your specific property rating at FloodSmart.gov.
The 30-day waiting period means you can't buy flood insurance when a hurricane is already approaching. Buy it now — before you need it.
