Fine Print Guide

Your home and things · NFIP, private flood

Flood insurance

Covers damage from rising water, which home, renters and condo policies all exclude. You buy it separately, usually through the federal NFIP.

Who it's for
Homeowners, renters and businesses anywhere it can rain. More than 20% of flood claims come from outside high-risk zones.
Is it required?
Required by lenders if the home is in a high-risk flood zone and the mortgage is federally backed. Optional everywhere else.

Usually covered

  • The building, including its foundation, electrical and plumbing, furnace, water heater, and built-in appliances
  • Your belongings, if you buy contents coverage. Renters can buy contents only.
  • Cleanup such as debris removal

Usually not covered

  • Floods that begin in the first 30 days after you buy the policy or raise its limits, the usual waiting period. Exceptions apply, such as buying when you get a mortgage.
  • Most contents in a basement, and finished basement walls and floors
  • Hotel and living costs while you're displaced (NFIP policies)
  • Water that seeps in because of poor drainage or a leak, rather than a flood
  • Cars, which are covered by comprehensive on your auto policy
  • Money, valuable papers, and land and landscaping

Real-life examples

A hurricane's storm surge pushes seawater into your ground floor.

Usually covered

Storm surge is flood, so the flood policy pays. The wind damage to your roof from the same storm goes to your home policy, usually with a separate hurricane or wind deductible.

You buy flood insurance the day before a forecast storm.

Usually not covered

NFIP policies usually take 30 days to start, so they won't pay for this storm. The main exception: buying at the same time as your mortgage.

Your finished basement floods; the carpet, drywall and a sofa are ruined.

Usually not covered

NFIP policies cover basement essentials like the furnace and water heater, but not finished walls, flooring or most belongings there.

What's inside an NFIP flood policy

BuildingBuilding propertyUp to $250,000 for a home

The structure and its systems. Paid at replacement cost for a single-family main home insured for at least 80% of its rebuilding cost, or for the $250,000 maximum; otherwise at actual cash value.

ContentsPersonal propertyUp to $100,000

Your belongings, bought separately. Always paid at actual cash value under the NFIP.

Good to know

What counts as a "flood"?

The official definition is water covering at least two acres of normally dry land, or two or more properties, from overflowing water, unusual runoff, or mudflow. Water that only affects your house, like a burst pipe, isn't flood and goes to your home policy.

Private flood insurance

Private insurers also sell flood policies. Some offer higher limits, shorter waiting periods, or living expenses. Lenders must accept private policies that meet federal standards.

Federal disaster aid is not insurance

Disaster aid only comes if the President declares a disaster, and it's often a loan you must repay, or a small grant.

Check your own policy

Find these on your policy or declarations page, or ask your agent:

  • Your flood zone, at FEMA's flood map
  • Building and contents limits
  • The start date, allowing for the 30-day wait
  • What's in your basement

Not sure where to look? See how to read your policy.

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