Does Homeowners Insurance Cover Flood Damage?

Water damage in a home is usually covered by homeowners insurance under specific circumstances. However, damages caused by a flood, such as a storm surge, won't be covered by your homeowners insurance and will need to be covered by a separate flood insurance policy.

If you want to protect yourself from this risk, flood insurance is available from major insurance companies and even many independent brokers. The National Flood Insurance Program (NFIP) also provides a list of different insurers that offer flood insurance.

You can ask your current homeowner insurance agent or mortgage lender for recommendations.

Most homeowners insurance policies do not cover water damage from flooding or natural disasters, such as hurricanes. In order to obtain flood insurance, homeowners must purchase a separate policy that will cover perils outlined below.

Homeowners insurance policies rarely cover flood damage. In most cases, it is necessary to get a separate flood insurance policy to ensure you are protected. Homeowners may choose to take out insurance through the NFIP, which offers coverage for the following:

• Building coverage: A limit of $250,000 applies to replacement cost or actual cash value, whichever is lower.
• Contents coverage: Personal property is covered up to $100,000 in actual cash value.
• Valuables coverage: Fine art, jewelry and collectibles are covered up to $2,500. Each policy has a separate deductible.

It's crucial to understand exactly what NFIP coverage includes, how much it covers and what its limitations are.

Flood damage caused by natural disasters is not covered by your homeowners insurance. To protect yourself from these risks, you need to purchase a separate flood damage policy. However, even this policy has certain limitations.

Here’s what flood damage policy doesn’t cover:

• Additional living expenses if you're forced out of your home
• Weakening or prolonged damage caused by moisture or mildew
• Exterior property and belongings
• Currency, precious metals and paper valuables

Flood insurance is either required by the government or your mortgage lender, depending on the risk of flooding in your area.

If you're unsure what zone your house sits in, you can check the FEMA Flood Insurance Rate Map. The panels map different flood zones, and these areas can be divided into three categories shown below:

Almost every major insurance company, like State Farm, as well as smaller ones, such as Lemonade or Hippo, offers home insurance. The average monthly premium for homeowners insurance is $175 per month.

Even so, costs can differ from company to company. It is important to shop around and compare home insurance policies to make sure you are getting the best deal for your needs.

To get a better idea of how much coverage you might need, use the personal property calculator below.