If you live in an area where tropical storms or heavy rain showers are regular occurrences, you might be surprised to learn that a standard renters or homeowners insurance policy will not cover flood damage. While you can add an individual flood insurance policy issued through the Federal Emergency Management Agency (FEMA), it will add hundreds of dollars per month to your home insurance premium.

Due to its high cost, most property owners only buy flood insurance when mortgage lenders require it. However, if you live in a flood zone, the cost of flood insurance may pale in comparison to the price of restoring your home’s structure following major water damage. If you decide you’d like to purchase flood insurance, we at the Home Media reviews team recommend getting several quotes to compare and choose the best plan.

Does Homeowners Insurance Cover Floods?

Homeowners and renters insurance policies do not cover damage that results from flooding. Most standard homeowners insurance policies specify that water damage to carpeting, the building and personal property is only covered if the water originates inside the home. For example, while your building coverage will compensate you for damage from a burst pipe, it will not cover the same damage if it was caused by water seeping through your basement. 

This doesn’t mean you must live in fear of the next natural disaster. You can purchase separate flood insurance coverage that extends your policy’s benefits to include flooding. Like home insurance, flood insurance policies have deductibles and premiums you’ll need to consider when filing flood insurance claims.

Flood insurance policies are standardized by the federal government, which means that insurance companies do not set prices for flood insurance policies. FEMA determines flood insurance premiums and deductibles after considering a location’s frequency and risk of flooding.

Home Insurance Providers With Flood Endorsements

Flood insurance from the National Flood Insurance Program (NFIP) is issued through private insurance companies after the federal government approves policies. You can find flood insurance through some major insurance companies. Some examples of insurers offering NFIP policy options include the following:

If you’re having trouble finding a flood insurance provider, you can explore a complete list of FEMA-approved insurers offering policies here.

Who Needs Flood Insurance?

You may need flood insurance if your home is in a high-risk flood zone. FEMA defines a high-risk flood zone as one with at least a 1% chance of experiencing a flood during a full calendar year. If you’re using a mortgage loan to purchase property in an area known for flooding, your mortgage lender will likely require you to purchase flood insurance as a condition of your loan.

High-Risk Flood Zones

FEMA has created a flood map of high-risk flood areas. To determine if you’re in an area prone to flooding, visit FEMA online and enter your address. You will see a map with a series of colored areas defined by zone name. If you see that your home is within the boundaries of a flood zone, you will be required to purchase flood insurance.

How Much Does Flood Insurance Cost?

Flood insurance can be expensive compared to other insurance types because it comes with its own premium and deductible that you must pay in addition to what you put into your homeowners insurance. Flood insurance rates and coverage are based on your home’s zone. Homes in areas with a high risk of flooding will pay more for coverage.

According to FEMA, the average cost of flood insurance through the NFIP is $771 annually. However, the specific flood insurance rate you’ll pay will vary depending on your home’s location and your policy’s value. If you live in an apartment, you may be able to access more affordable flood insurance with only contents coverage protection. Consult with a flood insurance provider in your area to explore costs and coverage options.

How Can I Buy Flood Insurance?

While FEMA determines whether or not an insurance company can sell flood insurance, most policies are issued through independent insurance providers. Through the Write-Your-Own (WYO) Program, the NFIP allows more than 50 participating insurance companies to issue these policies. If your insurance company does not participate, you can obtain flood insurance directly from the NFIP. In some areas, you may be able to purchase a private flood insurance policy with coverage limits greater than those defined by the NFIP.

To purchase flood insurance, start by reviewing the policy details on your homeowners insurance policy. Take a look at FEMA’s flood map to determine whether flood insurance is necessary based on your risk. While homeowners in low-risk areas aren’t required to buy flood insurance to get mortgage loans, anyone can purchase flood insurance.

The next step is to contact your insurance agent to request more information on flood insurance. If you already have a homeowners insurance policy, you may want to purchase coverage from the same provider if it offers flood protection to keep your payments simple. Your agent will walk you through what flood insurance does and does not cover and your monthly payment.

If you obtain flood insurance through the WYO program and you need to file a flood insurance claim, you will do so with your private insurance policy — not FEMA. Your insurance provider will handle verifying, processing and paying your claim.

The Bottom Line: Do You Need Flood Insurance?

Whether you need flood insurance will mostly depend on your location. You are not required to purchase flood insurance if you don’t live in a high-risk flood zone. However, you cannot assume that you will never experience flood damage if you don’t live in a flood zone. Check out FEMA’s flood zone map and assess your unique risk of flooding to determine whether flood insurance is worth the extra expense.