Flood insurance is a type of property insurance that provides financial protection against losses caused by flooding. Standard homeowners, renters, and commercial property policies typically do not cover flood damage, making separate flood insurance essential for properties located in high-risk areas.

Providers: In the U.S., most flood insurance is offered through the National Flood Insurance Program (NFIP), managed by FEMA. Private insurers may also provide policies with different terms.

Why It Matters:

Flooding is the most common and costly natural disaster in the U.S. Even areas outside designated high-risk zones can flood. Having flood insurance ensures financial protection and peace of mind in the event of severe weather or unexpected water damage.

What It Is:
Flood insurance provides financial protection against damage from flooding — the most common and costly natural disaster in the U.S. Since standard insurance doesn’t cover flood losses, this coverage is essential, especially in flood-prone areas.

Who Needs It:

• Homeowners, renters, and business owners

• Required for properties in high-risk flood zones with federally backed mortgages

• Strongly recommended for anyone near rivers, coasts, or low-lying areas

What It Covers:

• Building Coverage: The structure of your home or business (foundation, electrical, plumbing, HVAC, walls, appliances).

• Contents Coverage: Personal belongings like furniture, clothing, and electronics.

What’s Not Covered:

• Landscaping, decks, fences, and pools

• Cars and outdoor property

• Temporary living expenses if your home is uninhabitable

• Certain basement items

How It Works:

• Most policies are through FEMA’s NFIP, though private insurers may offer higher limits or different options.

• Premiums depend on property location, flood zone designation, elevation, age, and type of building.

• Policies usually have a 30-day waiting period before coverage begins.

Why It Matters:
Just one inch of water can cause tens of thousands of dollars in damage. Even properties outside of high-risk zones face flood risk, making flood insurance a smart safeguard for financial security and peace of mind.