How to buy flood insurance coverage

Floods can be devastating, but flood insurance is a way to protect your finances from the fallout of flood damage. If you’ve decided to buy a flood insurance policy, or if you’re required to buy one, you might be wondering where to start. After all, flood insurance isn’t as heavily advertised as auto or home coverage, and you might not know what information you need to get a quote. Bankrate can help. Our insurance editorial team walks you through the process of buying a flood insurance policy, so you rest assured that your finances are protected from the effects of flooding.

How to buy flood insurance

Are you wondering how to buy flood insurance? It’s fairly easy, but it’s not quite the same as buying a home insurance policy. You can buy flood insurance in two ways: through the government-sponsored National Flood Insurance Program (NFIP) or a private insurer. Previously, only the NFIP sold flood insurance, but in recent years, private carriers have begun entering the market, which means you can now shop for the best flood insurance rate.

Which insurance carriers offer flood insurance?

Many home insurance companies partner with the NFIP to offer flood insurance. To find a company in your state that sells flood coverage, you can use the flood insurance provider tool provided by the Federal Emergency Management Agency (FEMA).

Rates from these NFIP-sponsored policies will be the same regardless of which carrier is helping you navigate the process. You’ll only find rates that differ from the NFIP by getting quotes from the private market — companies that underwrite their own flood policies. Working with an independent insurance agent could be helpful if you want to get private flood insurance quotes. Many private flood insurance policies are sold by specialty carriers that an independent agent may have access to.

What you need to know before you buy flood insurance

Before you make that call to your insurance agent, you need to know what to ask to make sure you are getting the flood coverage you need. FEMA suggests asking your agent the following:

Does my community participate in the National Flood Insurance Program?

FEMA says that most communities participate, and your agent can tell you if that’s the case. To get flood insurance through the NFIP, your community must participate.

What flood zone do I live in?

Flood zones range from low-risk to high-risk. Technically, everyone is in a flood zone, although your zone may be the lowest possible risk level. It is important to understand your flood risk level to make an informed decision about your coverage. Keep in mind that if you live in a higher-risk flood zone, your mortgage company will likely require a flood insurance policy just like a home insurance policy.

How much coverage should I get for my building and my contents?

As with any insurance policy, some things will and will not be covered, and it is important to know what the policy covers before you buy flood insurance. Does it cover the contents of your home or just damage to the property? What types of floods are covered? Working with an agent could help you determine the right coverage level for you.

What does a typical flood insurance policy cover?

Flood insurance policies only cover damage from natural flood disasters, not from an overflowing toilet or broken pipe. So, for your flood policy to cover damage, it has to be from a naturally occurring incident.

If you need more clarification, FEMA’s definition of a flood can help sort things out. According to FEMA, a flood occurs when at least two acres of normally dry land is covered in standing water due to natural events or when standing water occurs due to a collapse of land along the shoreline of a natural body of water.

There are a couple of types of flood insurance, and what kind you have will dictate what’s covered.

Building property coverage

This type of coverage provides protection to:

• The structure of your house
• The electrical and plumbing systems
• Central AC, furnaces, vacuum systems, etc.
• Refrigerators and built-in appliances
• Permanently installed carpeting
• Window blinds
• Detached garages

If you want the items inside your house to be covered under your flood policy, you’ll have to purchase an additional type of coverage.

Personal property coverage

This covers most personal belongings or anything that is inside the house, including:

• Clothing, furniture and electronic equipment
• Curtains
• Portable air conditioners and window units
• Carpets not included in building coverage
• Washers and dryers
• Food freezers and the food in them
• Valuables like artwork and fur (up to $2,500)

Rental-specific coverage

Businesses and homeowners are not the only ones who need flood insurance; renters should look at what options are available, too. If you are a renter, you can also get a policy through the NFIP that will cover the contents of your rental, up to $100,000. The cost of the policy will depend on where you live and the flood risk to the property you are renting. If you are located in a low- to moderate-risk area, you may qualify for a Preferred Risk Policy, which will likely be significantly cheaper than a higher-risk policy.

Frequently asked questions

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    How much does flood insurance cost?

    Through the National Flood Insurance Program, the average cost of flood insurance is around $700 a year, according to FEMA. This rate increases in regions more prone to flooding and lowers in places with less risk. Private carriers set their rates, which means you may be able to find a lower rate through the private market. Shopping your policy with the NFIP and a few private flood insurers might help you find a cheaper policy.
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    Why is flood insurance not included in a home insurance policy?

    Flooding is considered a gradual event rather than a sudden accident, and this is why it is not included in a home or renter’s insurance policy. Additionally, flood damages tend to be widespread and cause large damage amounts, which home insurance companies may not be properly designed to handle. The NFIP, or a private flood insurer, has designed its finances to withstand the large influx of claims that happen with flood events.
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    How do I protect my house from flooding?

    Some ways to protect against flood damage include raising the house from the surface, installing sump pumps and checking valves on pipes, sealing cracks and gaps to prevent water from entering the house, waterproofing electrical wiring, and directing runoff away from the house and towards the street or gutter.