Do You Need Flood Insurance?

Determining whether a property sits in a flood zone is an important part of protecting your future investment. Understanding how flood insurance works helps you prepare for costs, coverage and long‑term peace of mind.

What Flood Insurance Covers

Everyone lives in a flood zone, whether it’s high‑, moderate‑ or low‑risk. Flooding can happen from storms, melting snow, hurricanes, drainage system backups or broken water mains. Since homeowners insurance does not cover flood damage, a flood policy is essential for safeguarding your home’s structure and belongings.

Moderate‑ to low‑risk areas may qualify for a Preferred Risk Policy, which offers lower‑cost coverage. This can be a smart option even if your lender doesn’t require flood insurance, since more than 20% of National Flood Insurance Program (NFIP) claims come from outside high‑risk zones.

GOOD TO KNOW
If the home you want to buy is in a designated flood zone, your lender will require you to have flood insurance.

How to Get Flood Insurance

Flood insurance is available through the NFIP and many private insurers. Policies allow you to insure both the building (up to $250,000 for most residential properties) and contents (up to $100,000), depending on your situation.

You can typically purchase coverage regardless of your flood risk, with a few exceptions such as certain Coastal Barrier Resources Systems (CBRSs) or Otherwise Protected Areas (OPAs), and some structures located below ground or entirely over water.

PRO TIP
Federal disaster assistance only applies when a disaster is officially declared, and even then, funds are often limited. Flood insurance pays even when there is no disaster declaration.

Your real estate agent can help you navigate flood maps, insurance requirements and what to expect financially. Understanding your coverage options puts you in control as you move toward purchasing a home.

Learn more by taking our free homebuyer education course!